Have Curaleaf Holdings, Inc. (CSE:CURA) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
December 03, 2020

Some Curaleaf Holdings, Inc. (CSE:CURA) shareholders may be a little concerned to see that the Independent Director, Mitchell Kahn, recently sold a substantial CA$4.4m worth of stock at a price of CA$13.08 per share. However, that sale only accounted for 6.0% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Curaleaf Holdings

Curaleaf Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Mitchell Kahn was the biggest sale of Curaleaf Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (CA$14.62). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 6.0%of Mitchell Kahn's holding.

Happily, we note that in the last year insiders paid CA$2.6m for 241.00k shares. On the other hand they divested 844.08k shares, for CA$9.2m. All up, insiders sold more shares in Curaleaf Holdings than they bought, over the last year. The average sell price was around US$10.88. We don't gain confidence from insider selling below the recent share price. But we wouldn't put too much weight on the insider selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

CNSX:CURA Insider Trading Volume December 3rd 2020

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

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. Curaleaf Holdings insiders own about CA$3.9b worth of shares (which is 42% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Curaleaf Holdings Insider Transactions Indicate?

An insider sold Curaleaf Holdings shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Curaleaf Holdings you should be aware of.

Of course Curaleaf Holdings 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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