Selling Tiny Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Tiny Ltd.'s (CVE:TINY) value has fallen 13% in the last week, but insiders who sold CA$941k worth of stock over the last year have had less success. The average selling price of CA$2.84 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Tiny

The Last 12 Months Of Insider Transactions At Tiny

The Co-Founder & Chairman of the Board, Andrew Wilkinson, made the biggest insider sale in the last 12 months. That single transaction was for CA$587k worth of shares at a price of CA$2.94 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$1.85. So it is hard to draw any strong conclusion from it. Andrew Wilkinson was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 41.12k shares for CA$121k. On the other hand they divested 331.80k shares, for CA$941k. Andrew Wilkinson sold a total of 331.80k shares over the year at an average price of CA$2.84. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insider Ownership

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. Tiny insiders own about CA$131m worth of shares. That equates to 38% of the company. 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 Tiny Insiders?

It doesn't really mean much that no insider has traded Tiny shares in the last quarter. While we feel good about high insider ownership of Tiny, we can't say the same about the selling of shares. 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. Every company has risks, and we've spotted 3 warning signs for Tiny (of which 2 can't be ignored!) you should know about.

Of course Tiny 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.

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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.