Bullish insiders at AutoCanada Inc. (TSE:ACQ) loaded up on CA$712k of stock earlier this year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of AutoCanada Inc. (TSE:ACQ), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for AutoCanada
AutoCanada Insider Transactions Over The Last Year
The Independent Director Lee Matheson made the biggest insider purchase in the last 12 months. That single transaction was for CA$419k worth of shares at a price of CA$28.31 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$28.12). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
AutoCanada insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
AutoCanada is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
AutoCanada Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at AutoCanada. Not only was there no selling that we can see, but they collectively bought CA$470k worth of shares. That shows some optimism about the company's future.
Does AutoCanada 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. We usually like to see fairly high levels of insider ownership. It appears that AutoCanada insiders own 11% of the company, worth about CA$80m. 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 AutoCanada Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest AutoCanada insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AutoCanada. At Simply Wall St, we've found that AutoCanada has 2 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
But note: AutoCanada may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
