Keeping tabs on large transactions for any company is a good idea for investors in specific stocks, as these transactions can sometimes provide insight into the fundamental belief insiders (executives) have in said company. When a CEO sells $10 million worth of stock options, some investors raise their eyebrows.
Such was the case with National Bank of Canada (TSX:NA) CEO Louis Vachon who sold approximately $10 million worth over the last two weeks, a large chunk of change. This transaction could be for tax reasons, or simply to diversify the CEO’s investment portfolio, but investors ought to take notice of such large transactions as these can signify some level of bearishness at the top levels of the company. Again, these sales need to be taken with a grain of salt, but ought to be considered by any investor considering such stocks.
As always, please remember to consult with a certified financial advisor into your own homework before making investing decisions. Insider buying and selling activity is not necessarily indicative of the future performance of a given company’s stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance.
Analyzing insider transactions in a given stock is one tool of many to gain pertinent information to assist in investment decision making.
Invest Wisely My Friends.
