Should You Review Recent Insider Transactions At Colliers International Group Inc. (TSE:CIGI)?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Colliers International Group Inc. (TSE:CIGI).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Colliers International Group

The Last 12 Months Of Insider Transactions At Colliers International Group

Over the last year, we can see that the biggest insider sale was by the Chief Financial Officer, Christian Mayer, for CA$1.2m worth of shares, at about CA$120 per share. That means that an insider was selling shares at slightly below the current price (CA$133). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 7.4% of Christian Mayer's holding.

Over the last year, we can see that insiders have bought 21.09k shares worth CA$1.8m. But they sold 78.36k shares for CA$8.0m. Over the last year we saw more insider selling of Colliers International Group shares, than buying. The sellers received a price of around US$102, on average. It's not particularly great to see insiders were selling shares at below recent prices. 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Colliers International Group Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Colliers International Group shares. In total, insiders sold CA$914k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Colliers International Group insiders own 8.8% of the company, currently worth about CA$471m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Colliers International Group Insider Transactions Indicate?

Insiders sold Colliers International Group shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Colliers International Group. Case in point: We've spotted 3 warning signs for Colliers International Group you should be aware of.

But note: Colliers International Group 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, 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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