Don't Ignore The Fact That This Insider Just Sold Some Shares In IM Cannabis Corp. (CSE:IMCC)

Investors may wish to note that the Director of IM Cannabis Corp., Rafael Gabay, recently netted CA$50k from selling stock, receiving an average price of CA$2.33. However we note that the sale only shrunk their holding by 0.07%.

Check out our latest analysis for IM Cannabis

The Last 12 Months Of Insider Transactions At IM Cannabis

In fact, the recent sale by Rafael Gabay was the biggest sale of IM Cannabis shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of CA$2.54, 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 only 0.07%of Rafael Gabay's holding.

Rafael Gabay ditched 47.10k shares over the year. The average price per share was CA$2.41. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of IM Cannabis

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that IM Cannabis insiders own 45% of the company, worth about CA$172m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About IM Cannabis Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 IM Cannabis you should be aware of, and 1 of them 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, 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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