Have Sleep Country Canada Holdings Inc. (TSE:ZZZ) Insiders Been Selling Their Stock?

We note that the Sleep Country Canada Holdings Inc. (TSE:ZZZ) Senior Vice-President of Merchandising & Marketing, Eric Solomon, recently sold CA$58k worth of stock for CA$21.00 per share. However we note that the sale only shrunk their holding by 8.6%.

Check out our latest analysis for Sleep Country Canada Holdings

The Last 12 Months Of Insider Transactions At Sleep Country Canada Holdings

In the last twelve months, the biggest single purchase by an insider was when Senior Vice-President of Operations Sieg Will bought CA$582k worth of shares at a price of CA$21.15 per share. That means that an insider was happy to buy shares at above the current price of CA$20.80. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 34638 shares for CA$723k. But insiders sold 44860 shares worth CA$907k. Over the last year we saw more insider selling of Sleep Country Canada Holdings shares, than buying. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSX:ZZZ Recent Insider Trading, August 26th 2019
TSX:ZZZ Recent Insider Trading, August 26th 2019

Insider Ownership of Sleep Country Canada Holdings

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. Insiders own 3.1% of Sleep Country Canada Holdings shares, worth about CA$24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Sleep Country Canada Holdings Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Sleep Country Canada Holdings, in the last three months. And our longer term analysis of insider transactions didn’t bring confidence, either. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Sleep Country Canada Holdings.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.