This Insider Has Just Sold Shares In Topicus.com

Some Topicus.com Inc. (CVE:TOI) shareholders may be a little concerned to see that the Group Chief Executive Officer of Topicus Operating Group, Daan Dijkhuizen, recently sold a substantial CA$1.7m worth of stock at a price of CA$121 per share. However, that sale only accounted for 6.2% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Topicus.com

The Last 12 Months Of Insider Transactions At Topicus.com

In fact, the recent sale by Daan Dijkhuizen was the biggest sale of Topicus.com shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of CA$127, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 6.2% of Daan Dijkhuizen's stake.

Over the last year we saw more insider selling of Topicus.com shares, than buying. 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.

Does Topicus.com Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Topicus.com insiders own 1.7% of the company, currently worth about CA$176m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Topicus.com Insiders?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Topicus.com makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. In terms of investment risks, we've identified 1 warning sign with Topicus.com and understanding it should be part of your investment process.

But note: Topicus.com may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.