We wouldn't blame TELUS International (Cda) Inc. (NYSE:TIXT) shareholders if they were a little worried about the fact that Christian Legat, the Chief Executive Officer of TELUS International Northern Europe recently netted about US$99m selling shares at an average price of US$34.00. Probably the most concerning element of the whole transaction is that the disposal amounted to 68% of their entire holding.
TELUS International (Cda) Insider Transactions Over The Last Year
Notably, that recent sale by Christian Legat is the biggest insider sale of TELUS International (Cda) shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$35.01). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 68% of Christian Legat's holding.
In the last twelve months insiders purchased 4.64k shares for US$140k. On the other hand they divested 4.25m shares, for US$141m. Christian Legat divested 4.25m shares over the last 12 months at an average price of US$33.16. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does TELUS International (Cda) 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. TELUS International (Cda) insiders own about US$182m worth of shares (which is 2.0% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The TELUS International (Cda) Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at TELUS International (Cda), in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. Every company has risks, and we've spotted 4 warning signs for TELUS International (Cda) you should know about.
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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, but not derivative transactions.
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.
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