Stock Analysis

100%of this TransAlta Renewables Inc. (TSE:RNW) insider's holdings were sold in the last year

  •  Updated
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Looking at TransAlta Renewables Inc.'s (TSE:RNW ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for TransAlta Renewables

The Last 12 Months Of Insider Transactions At TransAlta Renewables

The Corporate Independent Director, Allen Hagerman, made the biggest insider sale in the last 12 months. That single transaction was for CA$92k worth of shares at a price of CA$18.35 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$16.67). So it may not shed much light on insider confidence at current levels. Allen Hagerman was the only individual insider to sell shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

TSX:RNW Insider Trading Volume January 19th 2022

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data isn't picking up on much insider ownership at TransAlta Renewables, though insiders do hold about CA$792k worth of shares. We might be missing something but that seems like very low insider ownership.

So What Does This Data Suggest About TransAlta Renewables Insiders?

The fact that there have been no TransAlta Renewables insider transactions recently certainly doesn't bother us. Our analysis of TransAlta Renewables insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TransAlta Renewables. You'd be interested to know, that we found 2 warning signs for TransAlta Renewables and we suggest you have a look.

Of course TransAlta Renewables 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, but not derivative transactions.

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