Don't Ignore The Insider Selling In Premium Brands Holdings

We'd be surprised if Premium Brands Holdings Corporation (TSE:PBH) shareholders haven't noticed that the Chief Financial Officer, William Kalutycz, recently sold CA$604k worth of stock at CA$86.30 per share. On the bright side, that sale was only 6.4% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Premium Brands Holdings

Premium Brands Holdings Insider Transactions Over The Last Year

Notably, that recent sale by William Kalutycz is the biggest insider sale of Premium Brands Holdings shares that we've seen in the last year. That means that an insider was selling shares at below the current price (CA$87.45). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was only 6.4% of William Kalutycz's holding.

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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Premium Brands Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.5% of Premium Brands Holdings shares, worth about CA$95m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Premium Brands Holdings Insider Transactions Indicate?

An insider sold Premium Brands Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Premium Brands Holdings has 3 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.