Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Torrent Capital Ltd. (CVE:TORR), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Torrent Capital
The Last 12 Months Of Insider Transactions At Torrent Capital
While no particular insider transaction stood out, we can still look at the overall trading.
In the last twelve months insiders purchased 222.50k shares for CA$179k. But insiders sold 16.30k shares worth CA$16k. In total, Torrent Capital insiders bought more than they sold over the last year. 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!
Torrent Capital is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Torrent Capital Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Torrent Capital. Insiders purchased CA$24k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Does Torrent Capital Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Torrent Capital insiders own about CA$7.2m worth of shares (which is 44% of the company). 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 Does This Data Suggest About Torrent Capital Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Torrent Capital insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (3 are significant!) that you ought to be aware of before buying any shares in Torrent Capital.