Some Definity Financial Corporation (TSE:DFY) shareholders may be a little concerned to see that the Senior Vice President of Corporate Affairs, Innes Dey, recently sold a substantial CA$1.3m worth of stock at a price of CA$80.76 per share. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.
Definity Financial Insider Transactions Over The Last Year
In fact, the recent sale by Innes Dey was the biggest sale of Definity Financial shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of CA$79.77. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last twelve months insiders purchased 2.55k shares for CA$178k. But they sold 49.14k shares for CA$3.7m. In total, Definity Financial insiders sold more than they bought 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Definity Financial
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Does Definity Financial 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Definity Financial insiders own 1.1% of the company, worth about CA$108m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Definity Financial Tell Us?
Insiders sold Definity Financial shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Definity Financial is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Definity Financial. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Definity Financial.
Of course Definity Financial may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.