Grown Rogue International Insiders Benefitted From Selling Stock At US$0.68

While Grown Rogue International Inc. (CSE:GRIN) shareholders have had a good week with the stock up 10.0%, insiders can't say the same having sold stock over the past year. They could have sold their shares at much higher prices and gotten a better return on their investment if they had waited.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Grown Rogue International

Grown Rogue International Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Stephen Gledhill, for CA$154k worth of shares, at about CA$0.96 per share. That means that even when the share price was below the current price of CA$0.99, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 92% of Stephen Gledhill's holding.

Over the last year we saw more insider selling of Grown Rogue International shares, than buying. The sellers received a price of around US$0.68, on average. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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 Grown Rogue International better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Grown Rogue International

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 19% of Grown Rogue International shares, worth about CA$42m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Grown Rogue International Insider Transactions Indicate?

The fact that there have been no Grown Rogue International insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Grown Rogue International insiders. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Grown Rogue International (including 1 which is concerning).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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