Chairman of the Board of CI Financial William Holland Buys 1.0% More Shares \
Those following along with CI Financial Corp. (TSE:CIX) will no doubt be intrigued by the recent purchase of shares by William Holland, Chairman of the Board of the company, who spent a stonking CA$1.3m on stock at an average price of CA$12.75. While that only increased their holding size by 1.0%, it is still a big swing by our standards.
Check out our latest analysis for CI Financial
The Last 12 Months Of Insider Transactions At CI Financial
Notably, that recent purchase by William Holland is the biggest insider purchase of CI Financial shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$12.76. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the CI Financial insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 718.00k shares for CA$10m. But they sold 130.36k shares for CA$1.8m. In the last twelve months there was more buying than selling by CI Financial insiders. Their average price was about CA$14.25. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. CI Financial insiders own about CA$157m worth of shares (which is 6.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About CI Financial Insiders?
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 CI Financial insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that CI Financial is showing 4 warning signs in our investment analysis, and 1 of those is potentially serious...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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