Trade Alert: Chief Information Officer Of SunOpta Rob Duchscher Has Sold Stock

Anyone interested in SunOpta Inc. (NASDAQ:STKL) should probably be aware that the Chief Information Officer, Rob Duchscher, recently divested US$367k worth of shares in the company, at an average price of US$7.33 each. In particular, we note that the sale equated to a 54% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for SunOpta

The Last 12 Months Of Insider Transactions At SunOpta

Over the last year, we can see that the biggest insider sale was by the insider, Joseph Ennen, for US$1.0m worth of shares, at about US$6.98 per share. That means that an insider was selling shares at slightly below the current price (US$7.51). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. This single sale was just 7.9% of Joseph Ennen's stake.

In total, SunOpta insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of SunOpta

Many investors like to check how much of a company is owned by 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. SunOpta insiders own about US$18m worth of shares. That equates to 2.1% 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 SunOpta Insiders?

Insiders sold SunOpta shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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 example - SunOpta has 2 warning signs we think you should be aware of.

Of course SunOpta 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.