Possible Bearish Signals With Thunderbird Entertainment Group Insiders Disposing Stock

Many Thunderbird Entertainment Group Inc. (CVE:TBRD) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Thunderbird Entertainment Group

The Last 12 Months Of Insider Transactions At Thunderbird Entertainment Group

Over the last year, we can see that the biggest insider sale was by the CEO & Chairman, Jennifer McCarron, for CA$878k worth of shares, at about CA$5.04 per share. While insider selling is a negative, to us, it is more negative if the shares are sold 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$3.65. So it is hard to draw any strong conclusion from it. Notably Jennifer McCarron was also the biggest buyer, having purchased CA$75k worth of shares.

Over the last year we saw more insider selling of Thunderbird Entertainment Group shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Thunderbird Entertainment Group Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Thunderbird Entertainment Group. In total, CEO & Chairman Jennifer McCarron sold CA$345k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Thunderbird Entertainment Group 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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$1.9m worth of Thunderbird Entertainment Group stock, about 1.1% of the company. We prefer to see high levels of insider ownership.

So What Do The Thunderbird Entertainment Group Insider Transactions Indicate?

An insider sold Thunderbird Entertainment Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly practice some caution before buying! 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. Case in point: We've spotted 1 warning sign for Thunderbird Entertainment Group you should be aware of.

But note: Thunderbird Entertainment Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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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.