21% Of This Definity Financial Insider's Holdings Were Sold

From what we can see, insiders were net sellers in Definity Financial Corporation's (TSE:DFY ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Definity Financial

Definity Financial Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Risk & Actuarial Officer, Liam McFarlane, sold CA$576k worth of shares at a price of CA$37.25 per share. That means that an insider was selling shares at slightly below the current price (CA$45.14). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 21% of Liam McFarlane's holding. Liam McFarlane was the only individual insider to sell over the last year.

Liam McFarlane sold a total of 19.47k shares over the year at an average price of CA$39.01. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Definity Financial better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Definity Financial Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Definity Financial. In total, Chief Risk & Actuarial Officer Liam McFarlane sold CA$183k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Definity Financial Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.0% of Definity Financial shares, worth about CA$51m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Definity Financial Tell Us?

An insider sold Definity Financial shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Definity Financial is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Definity Financial.

Of course Definity Financial may not be the best stock to buy. So you may wish to see this free collection of high quality 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.