Insiders at Points.com Inc. (TSE:PTS) must be relieved they sold stock as market valuation descends to CA$309m

By
Simply Wall St
Published
April 09, 2022
TSX:PTS
Source: Shutterstock

Insiders at Points.com Inc. (TSE:PTS) sold US$280k worth of stock at an average price of US$21.21 a share over the past year, making the most of their investment. The company's market valuation decreased by CA$37m after the stock price dropped 11% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Points.com

Points.com Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, David Croxon, for CA$138k worth of shares, at about CA$21.09 per share. So what is clear is that an insider saw fit to sell at around the current price of CA$20.98. 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.

Points.com insiders didn't buy any shares over the last year. 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!

insider-trading-volume
TSX:PTS Insider Trading Volume April 9th 2022

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

Does Points.com Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Points.com insiders own about CA$21m worth of shares. That equates to 6.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Points.com Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Points.com insiders. But it's good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in Points.com, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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