Don't Ignore The Insider Selling In Restaurant Brands International

Some Restaurant Brands International Inc. (NYSE:QSR) shareholders may be a little concerned to see that the President of Burger King U.S. & Canada, Thomas Curtis, recently sold a substantial US$1.6m worth of stock at a price of US$68.38 per share. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.

Restaurant Brands International Insider Transactions Over The Last Year

The President of Tim Hortons - Canada & U.S., Axel Schwan, made the biggest insider sale in the last 12 months. That single transaction was for US$2.5m worth of shares at a price of US$71.10 each. So what is clear is that an insider saw fit to sell at around the current price of US$67.84. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Restaurant Brands International insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Restaurant Brands International

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).

Does Restaurant Brands International Boast High 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. Restaurant Brands International insiders own 1.2% of the company, currently worth about US$353m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Restaurant Brands International Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we've identified 2 warning signs for Restaurant Brands International (1 doesn't sit too well with us) you should be aware of.

But note: Restaurant Brands International 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.