Have Insiders Sold Tecsys Shares Recently?

Some Tecsys Inc. (TSE:TCS) shareholders may be a little concerned to see that the Executive Chairman, David Brereton, recently sold a substantial CA$2.8m worth of stock at a price of CA$31.07 per share. However, that sale only accounted for 8.9% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Tecsys

Tecsys Insider Transactions Over The Last Year

Notably, that recent sale by David Brereton is the biggest insider sale of Tecsys shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of CA$31.40. 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. It is worth noting that this sale was only 8.9% of David Brereton's holding.

Happily, we note that in the last year insiders paid CA$44k for 1.50k shares. On the other hand they divested 354.20k shares, for CA$10m. In total, Tecsys insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Tecsys 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

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 10% of Tecsys shares, worth about CA$48m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Tecsys Insiders?

An insider sold Tecsys shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Tecsys has 2 warning signs and it would be unwise to ignore these.

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 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.