Yahoo Finance How Many Insiders Sold Great Canadian Gaming Corporation (TSE:GC) Shares?
We often see insiders buying up shares in companies that perform well over the long term. 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 Great Canadian Gaming Corporation (TSE:GC).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for Great Canadian Gaming
Great Canadian Gaming Insider Transactions Over The Last Year
Chuck Keeling made the biggest insider sale in the last 12 months. That single transaction was for CA$590k worth of shares at a price of CA$51.20 each. So we know that an insider sold shares at around the present share price of CA$48.06. While their view may have changed since the sale, this is not a particularly positive fact. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment.
Over the last year, we can see that insiders have bought 17.87k shares worth CA$382k. But they sold 46.33k for CA$1.8m. All up, insiders sold more shares in Great Canadian Gaming than they bought, over the last year. They sold for an average price of about CA$38.87. It’s not too encouraging to see that insiders have sold at below the current price. But we wouldn’t put too much weight on the insider selling. You can see a visual depiction of insider transactions 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Great Canadian Gaming Have Sold Stock Recently
There was substantially more insider selling, than buying, of Great Canadian Gaming shares over the last three months. In total, insiders sold CA$748k worth of shares in that time. On the other hand we note Darren Gwozd bought CA$56k worth of shares. Since the selling really does outweigh the buying, we’d say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It’s great to see that Great Canadian Gaming insiders own 5.4% of the company, worth about CA$157m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Great Canadian Gaming Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Great Canadian Gaming, in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. But since Great Canadian Gaming is profitable and growing, we’re not too worried by this. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Great Canadian Gaming.
But note: Great Canadian Gaming 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.
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.
