Dollarama Independent Chairman of the Board Stephen Gunn Sells 44% Of Holding

We wouldn't blame Dollarama Inc. (TSE:DOL) shareholders if they were a little worried about the fact that Stephen Gunn, the Independent Chairman of the Board recently netted about CA$7.8m selling shares at an average price of CA$142. That's a big disposal, and it decreased their holding size by 44%, which is notable but not too bad.

View our latest analysis for Dollarama

Dollarama Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder & Chairman Emeritus, Laurence Rossy, sold CA$28m worth of shares at a price of CA$124 per share. That means that even when the share price was below the current price of CA$142, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 13% of Laurence Rossy's holding.

In the last year Dollarama insiders didn't buy any company stock. 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!

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).

Does Dollarama Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Dollarama insiders own 1.5% of the company, worth about CA$581m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Dollarama Insiders?

Insiders haven't bought Dollarama stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Dollarama makes money, and is growing profits. 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. For example - Dollarama has 2 warning signs we think you should be aware of.

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 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.