Since the March 23 stock market lows, Canadian National Railway Co. has rallied about 33 per cent, but that is less than the INK Canadian Insider Index, which is up about 60 per cent. Could rising expenses have something to do with the underperformance? When CNR reported second-quarter results July 2, its operating expense ratio, defined as operating expenses as a percentage of revenues, came in at 75.5 per cent, higher than 57.5 per cent in Q2 2019. After the news, insiders have been net sellers of $3,286,461 worth of stock, even after accounting for options exercise costs.
Ted Dixon is CEO of INK Research, which provides insider news and knowledge to investors. For more background on insider reporting in Canada, visit the FAQ section at www.inkresearch.com. Securities referenced in this profile may have already appeared in recent reports distributed to INK subscribers. INK staff may also hold a position in profiled securities.
Chart reflects public-market transactions of common shares or unit trusts by company officers and directors.
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