Executive VP & Chief People Officer Of Spin Master Sold 93% Of Their Shares

We wouldn't blame Spin Master Corp. (TSE:TOY) shareholders if they were a little worried about the fact that Tara Deakin, the Executive VP & Chief People Officer recently netted about CA$787k selling shares at an average price of CA$31.87. Probably the most concerning element of the whole transaction is that the disposal amounted to 93% of their entire holding.

Check out our latest analysis for Spin Master

Spin Master Insider Transactions Over The Last Year

In fact, the recent sale by Tara Deakin was the biggest sale of Spin Master shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (CA$32.29). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 93% of Tara Deakin's holding.

Spin Master insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Spin Master

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Spin Master insiders own 64% of the company, currently worth about CA$2.1b based on the recent share price. 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 Does This Data Suggest About Spin Master Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 3 warning signs with Spin Master and understanding these should be part of your investment process.

Of course Spin Master 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.