Have Tucows Inc. (NASDAQ:TCX) Insiders Been Selling Their Stock?

We'd be surprised if Tucows Inc. (NASDAQ:TCX) shareholders haven't noticed that the Executive Vice President of Domains, David Woroch, recently sold US$305k worth of stock at US$76.34 per share. On the bright side, that sale was only 3.1% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Tucows

The Last 12 Months Of Insider Transactions At Tucows

The Chief Legal Officer & General Counsel Bret Fausett made the biggest insider purchase in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$45.00 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$77.81. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 27.98k shares worth US$1.3m. But insiders sold 7.28k shares worth US$531k. In the last twelve months there was more buying than selling by Tucows insiders. 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!

Tucows is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Tucows insiders own about US$76m worth of shares. That equates to 9.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Tucows Insider Transactions Indicate?

Insiders sold Tucows shares recently, but they didn't buy any. But we take heart from prior transactions. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. 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. In terms of investment risks, we've identified 3 warning signs with Tucows and understanding these should be part of your investment process.

But note: Tucows 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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