Stock Analysis

Saputo Insiders Sell CA$1.1b Of Stock, Possibly Signalling Caution

TSX:SAP
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The fact that multiple Saputo Inc. (TSE:SAP) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Saputo Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Francesco Saputo, sold CA$1.1b worth of shares at a price of CA$29.12 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$26.24. So it may not tell us anything about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 28.55m shares worth CA$815m. But insiders sold 40.00m shares worth CA$1.1b. In total, Saputo 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Saputo

insider-trading-volume
TSX:SAP Insider Trading Volume May 23rd 2025

I will like Saputo better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Saputo Have Bought Stock Recently

Over the last quarter, Saputo insiders have spent a meaningful amount on shares. insider Joey Saputo spent CA$12m on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Does Saputo Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Saputo insiders own about CA$4.3b worth of shares (which is 40% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Saputo Tell Us?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Saputo. While conducting our analysis, we found that Saputo has 2 warning signs and it would be unwise to ignore them.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

About TSX:SAP

Saputo

Produces, markets, and distributes dairy products in Canada, the United States, Australia, Argentina, and the United Kingdom.

Excellent balance sheet average dividend payer.

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