Independent Director William Holland Just Bought 10.0% More Shares In Real Matters Inc. (TSE:REAL)

Real Matters Inc. (TSE:REAL) shareholders (or potential shareholders) will be happy to see that the Independent Director, William Holland, recently bought a whopping CA$2.9m worth of stock, at a price of CA$19.37. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 10.0%.

Check out our latest analysis for Real Matters

The Last 12 Months Of Insider Transactions At Real Matters

Notably, that recent purchase by Independent Director William Holland was not the only time they traded Real Matters shares this year. They previously made a sale of -CA$9.6m worth of shares at a price of CA$15.72 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$20.03. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 23% of William Holland's stake.

In total, Real Matters insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Real Matters 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Real Matters insiders own about CA$117m worth of shares. That equates to 6.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Real Matters Tell Us?

The insider sales have outweighed the insider buying, at Real Matters, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Real Matters is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Real Matters you should know about.

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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