Stock Analysis

Have Insiders Sold Cronos Group Inc. (TSE:CRON) Shares Recently?

  •  Updated
TSX:CRON
Source: Shutterstock

We note that a Cronos Group Inc. (TSE:CRON) insider, Jeffrey Jacobson, recently sold CA$77k worth of stock for CA$17.22 per share. That might not be a huge sum but it was 100% of their personal holding, so we find it a little discouraging.

See our latest analysis for Cronos Group

The Last 12 Months Of Insider Transactions At Cronos Group

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, Michael Gorenstein, for CA$12m worth of shares, at about CA$10.32 per share. That means that an insider was selling shares at slightly below the current price (CA$13.06). 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 68% of Michael Gorenstein's holding.

Over the last year we saw more insider selling of Cronos Group shares, than buying. 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!

insider-trading-volume
TSX:CRON Insider Trading Volume March 4th 2021

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 Cronos Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Cronos Group insiders own 3.1% of the company, worth about CA$148m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Cronos Group Tell Us?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Case in point: We've spotted 2 warning signs for Cronos Group you should be aware of.

Of course Cronos Group 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.

If you decide to trade Cronos Group, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Valuation is complex, but we're helping make it simple.

Find out whether Cronos Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis