Don't Ignore The Insider Selling In TerraVest Industries

We'd be surprised if TerraVest Industries Inc. (TSE:TVK) shareholders haven't noticed that the Executive Chairman, Charles Pellerin, recently sold CA$530k worth of stock at CA$100.00 per share. On the bright side, that sale was only 0.1% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for TerraVest Industries

The Last 12 Months Of Insider Transactions At TerraVest Industries

The Independent Director, Dale Laniuk, made the biggest insider sale in the last 12 months. That single transaction was for CA$6.3m worth of shares at a price of CA$74.25 each. That means that an insider was selling shares at slightly below the current price (CA$97.44). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 99% of Dale Laniuk's holding.

Happily, we note that in the last year insiders paid CA$72k for 1.24k shares. But insiders sold 276.48k shares worth CA$21m. In total, TerraVest Industries insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does TerraVest Industries Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that TerraVest Industries insiders own 22% of the company, worth about CA$427m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The TerraVest Industries Insider Transactions Indicate?

Insiders sold TerraVest Industries shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, TerraVest Industries makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - TerraVest Industries has 3 warning signs we think you should be aware of.

But note: TerraVest Industries may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.