Selling Postmedia Network Canada Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Despite the fact that Postmedia Network Canada Corp.'s (TSE:PNC.B) value has dropped 12% in the last week insiders who sold CA$9.8m worth of stock in the past 12 months have had less success. The average selling price of CA$1.35 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Postmedia Network Canada

The Last 12 Months Of Insider Transactions At Postmedia Network Canada

The insider, Leon Cooperman, made the biggest insider sale in the last 12 months. That single transaction was for CA$9.8m worth of shares at a price of CA$1.35 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$1.17). So it may not shed much light on insider confidence at current levels. Leon Cooperman was the only individual insider to sell shares in the last twelve months.

Leon Cooperman divested 7.25m shares over the last 12 months at an average price of CA$1.35. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Postmedia Network Canada

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. We usually like to see fairly high levels of insider ownership. Our information indicates that Postmedia Network Canada insiders own about CA$261k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Does This Data Suggest About Postmedia Network Canada Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at Postmedia Network Canada are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Postmedia Network Canada. Every company has risks, and we've spotted 5 warning signs for Postmedia Network Canada (of which 4 can't be ignored!) you should know about.

Of course Postmedia Network Canada 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com