Have Insiders Sold Dollarama Shares Recently?

We wouldn't blame Dollarama Inc. (TSE:DOL) shareholders if they were a little worried about the fact that Geoffrey Robillard, the Senior Vice President of Import Division recently netted about CA$10m selling shares at an average price of CA$143. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Dollarama

Dollarama Insider Transactions Over The Last Year

The Founder & Chairman Emeritus, Laurence Rossy, made the biggest insider sale in the last 12 months. That single transaction was for CA$28m worth of shares at a price of CA$124 each. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$144. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 13% of Laurence Rossy's stake.

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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Dollarama

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Dollarama insiders own 1.5% of the company, currently worth about CA$591m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all 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. And there weren't any purchases to give us comfort, over the last year. On the plus side, Dollarama makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Dollarama.

Of course Dollarama 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.