Yahoo Finance Are Insiders Selling Firm Capital Mortgage Investment Corporation (TSE:FC) Stock?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Firm Capital Mortgage Investment Corporation (TSE:FC).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
See our latest analysis for Firm Capital Mortgage Investment
Firm Capital Mortgage Investment Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when COO, Executive VP & Director Jonathan Mair sold CA$94k worth of shares at a price of CA$13.41 per share. So what is clear is that an insider saw fit to sell at around the current price of CA$13.00. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price. Jonathan Mair was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 5.30k shares for CA$69k. But they sold 10.10k for CA$134k. Jonathan Mair divested 10.10k shares over the last 12 months at an average price of CA$13.26. The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Firm Capital Mortgage Investment Have Sold Stock Recently
We’ve seen more insider selling than insider buying at Firm Capital Mortgage Investment recently. We note Jonathan Mair cashed in CA$134k worth of shares. On the flip side, Chief Financial Officer Boris Baril spent CA$34k on purchasing shares. Because the selling vastly outweighs the buying, we’d say this is a somewhat bearish sign.
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. It’s great to see that Firm Capital Mortgage Investment insiders own 1.8% of the company, worth about CA$6.1m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Firm Capital Mortgage Investment Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Firm Capital Mortgage Investment, in the last three months. And our longer term analysis of insider transactions didn’t bring confidence, either. Insiders own relatively few shares in the company, and when you consider the sales, we’re not particularly excited about the stock. As the saying goes, only fools rush in. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
