Trade Alert: The Director Of Trulieve Cannabis Corp. (CSE:TRUL), Susan Thronson, Has Just Spent US$64k Buying 65% More Shares

By
Simply Wall St
Published
November 27, 2020
CNSX:TRUL

Even if it's not a huge purchase, we think it was good to see that Susan Thronson, the Director of Trulieve Cannabis Corp. (CSE:TRUL) recently shelled out CA$64k to buy stock, at CA$35.24 per share. While that isn't the hugest buy, it actually boosted their shareholding by 65%, which is good to see.

Check out our latest analysis for Trulieve Cannabis

Trulieve Cannabis Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Thad Beshears, for CA$16m worth of shares, at about CA$26.95 per share. That means that even when the share price was below the current price of CA$37.10, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 20% of Thad Beshears's holding. Thad Beshears was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid CA$903k for 44.02k shares. But they sold 585.00k shares for CA$16m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
CNSX:TRUL Insider Trading Volume November 27th 2020

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

Insider Ownership of Trulieve Cannabis

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Trulieve Cannabis insiders own 31% of the company, currently worth about CA$1.3b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Trulieve Cannabis Tell Us?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. 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. For instance, we've identified 4 warning signs for Trulieve Cannabis (1 is a bit concerning) you should be aware of.

Of course Trulieve Cannabis 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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