CI Financial Corp. (TSE:CIX) insiders placed bullish bets worth CA$13m in the last 12 months
In the last year, multiple insiders have substantially increased their holdings of CI Financial Corp. (TSE:CIX) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for CI Financial
CI Financial Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board William Holland bought CA$2.4m worth of shares at a price of CA$23.92 per share. That means that an insider was happy to buy shares at above the current price of CA$15.54. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$13m for 770.15k shares. But insiders sold 130.36k shares worth CA$1.8m. In total, CI Financial insiders bought more than they sold over the last year. Their average price was about CA$16.99. 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!
CI Financial 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.
Insiders At CI Financial Have Sold Stock Recently
There was substantially more insider selling, than buying, of CI Financial shares over the last three months. In total, insiders sold CA$1.3m worth of shares in that time. Meanwhile Chairman of the Board William Holland bought CA$1.0m worth. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that CI Financial insiders own 6.5% of the company, worth about CA$187m. 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 CI Financial Tell Us?
Unfortunately, there has been more insider selling of CI Financial stock, than buying, in the last three months. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So we're happy to look past recent trading. 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. Be aware that CI Financial is showing 3 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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