Have FirstService Insiders Been Selling Stock?

Some FirstService Corporation (TSE:FSV) shareholders may be a little concerned to see that the Founder & Independent Chairman of the Board, Jay Hennick, recently sold a substantial CA$57m worth of stock at a price of CA$236 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.9%.

Check out our latest analysis for FirstService

The Last 12 Months Of Insider Transactions At FirstService

Notably, that recent sale by Jay Hennick is the biggest insider sale of FirstService shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of CA$237. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 45.00k shares worth CA$5.9m. But insiders sold 468.16k shares worth CA$107m. In total, FirstService insiders sold more than they bought over the last year. They sold for an average price of about US$229. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that FirstService insiders own 8.3% of the company, worth about CA$884m. 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 FirstService Tell Us?

Insiders sold FirstService shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. Case in point: We've spotted 3 warning signs for FirstService you should be aware of.

But note: FirstService 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 of direct interests only, but not derivative transactions or indirect interests.

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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.