Have Intact Financial Insiders Been Selling Stock?

Some Intact Financial Corporation (TSE:IFC) shareholders may be a little concerned to see that insider Benoit Morissette recently sold a substantial CA$1.7m worth of stock at a price of CA$287 per share. That sale reduced their total holding by 31% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Intact Financial

The Last 12 Months Of Insider Transactions At Intact Financial

The Chief Executive Officer of Global Specialty Lines, Timothy Miller, made the biggest insider sale in the last 12 months. That single transaction was for CA$7.0m worth of shares at a price of CA$265 each. That means that even when the share price was below the current price of CA$288, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 23% of Timothy Miller's stake.

Intact Financial insiders didn't buy any shares 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!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Intact Financial insiders own 0.5% of the company, worth about CA$233m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Intact Financial Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Intact Financial makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Intact Financial. While conducting our analysis, we found that Intact Financial has 1 warning sign and it would be unwise to ignore it.

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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.