Have Insiders Sold TerraVest Industries Shares Recently?

We'd be surprised if TerraVest Industries Inc. (TSE:TVK) shareholders haven't noticed that the Independent Director, Blair Cook, recently sold CA$298k worth of stock at CA$74.50 per share. That sale was 25% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for TerraVest Industries

The Last 12 Months Of Insider Transactions At TerraVest Industries

Over the last year, we can see that the biggest insider sale was by the President of Diamond Energy Services Limited Partnership, Michael Gering, for CA$1.1m worth of shares, at about CA$29.31 per share. That means that an insider was selling shares at slightly below the current price (CA$71.62). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 85% of Michael Gering's holding.

Over the last year we saw more insider selling of TerraVest Industries shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that TerraVest Industries insiders own 25% of the company, worth about CA$328m. 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 Does This Data Suggest About TerraVest Industries Insiders?

Unfortunately, there has been more insider selling of TerraVest Industries stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that TerraVest Industries is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that TerraVest Industries has 2 warning signs and it would be unwise to ignore these.

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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.