We'd be surprised if Tucows Inc. (NASDAQ:TCX) shareholders haven't noticed that the Chief People Officer, Jessica Johannson, recently sold US$114k worth of stock at US$81.06 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.
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. Even though the purchase was made at a significantly lower price than the recent price (US$83.76), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 27.98k shares for US$1.3m. But they sold 8.69k shares for US$645k. Overall, Tucows insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
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. We usually like to see fairly high levels of insider ownership. Tucows insiders own about US$83m worth of shares. That equates to 9.3% 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 Do The Tucows Insider Transactions Indicate?
Insiders sold Tucows shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. While we like knowing 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. To help with this, we've discovered 5 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Tucows.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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