Stock Analysis

With Curaleaf Holdings, Inc.'s (CSE:CURA)) price down 6.7% this week, insiders might find some solace having sold US$7.6m worth of shares earlier this year.

TSX:CURA
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Insiders seem to have made the most of their holdings by selling US$7.6m worth of Curaleaf Holdings, Inc. (CSE:CURA) stock at an average sell price of US$17.34 during the past year. The company's market valuation decreased by CA$452m after the stock price dropped 6.7% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Curaleaf Holdings

The Last 12 Months Of Insider Transactions At Curaleaf Holdings

Over the last year, we can see that the biggest insider sale was by the Director, Mitchell Kahn, for CA$2.2m worth of shares, at about CA$18.05 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$8.95. So it may not tell us anything about how insiders feel about the current share price. Mitchell Kahn was the only individual insider to sell over the last year.

Mitchell Kahn sold a total of 438.62k shares over the year at an average price of US$17.34. 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!

insider-trading-volume
CNSX:CURA Insider Trading Volume January 29th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Curaleaf Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Curaleaf Holdings insiders own 39% of the company, currently worth about CA$2.5b based on the recent share price. 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 Curaleaf Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Curaleaf Holdings insiders selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Curaleaf Holdings.

But note: Curaleaf Holdings 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.