Over the last year, a good number of insiders have significantly increased their holdings in Topicus.com Inc. (CVE:TOI). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Topicus.com
The Last 12 Months Of Insider Transactions At Topicus.com
Over the last year, we can see that the biggest insider purchase was by Group Chief Executive Officer of Topicus Operating Group Daan Dijkhuizen for CA$16m worth of shares, at about CA$72.16 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$97.92), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 308.68k shares worth CA$17m. But insiders sold 1.90k shares worth CA$171k. Overall, Topicus.com insiders were net buyers during the last year. They paid about CA$56.10 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Topicus.com 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.
Topicus.com Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Topicus.com shares. In total, insider Bernard Anzarouth dumped CA$171k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Topicus.com Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Topicus.com insiders own 1.1% of the company, worth about CA$87m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.