Over the last year, a good number of insiders have significantly increased their holdings in Restaurant Brands International Inc. (NYSE:QSR). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Restaurant Brands International Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman J. Doyle for US$30m worth of shares, at about US$60.77 per share. So it's clear an insider wanted to buy, at around the current price, which is US$62.95. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid US$30m for 500.70k shares. But they sold 148.07k shares for US$9.4m. Overall, Restaurant Brands International insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Restaurant Brands International Have Sold Stock Recently
The last three months saw significant insider selling at Restaurant Brands International. In total, insiders sold US$6.6m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of Restaurant Brands International
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Restaurant Brands International insiders own about US$256m worth of shares (which is 0.9% 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.
What Might The Insider Transactions At Restaurant Brands International Tell Us?
Insiders sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So we're not too bothered by recent selling. 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 3 warning signs for Restaurant Brands International (of which 1 is a bit unpleasant!) you should know about.
Of course Restaurant Brands International 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, but not derivative transactions.
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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.
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