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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Conifex Timber Inc. (TSE:CFF), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Conifex Timber
While no particular insider transaction stood out, we can still look at the overall trading.
Over the last year, we can see that insiders have bought 33.60k shares worth CA$194k. But they sold 38.00 for CA$159. In the last twelve months there was more buying than selling by Conifex Timber insiders. They paid about CA$5.78 on average. These transactions suggest that insiders have considered the current price of CA$1.87 attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Conifex Timber Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From our data, it seems that Conifex Timber insiders own 7.1% of the company, worth about CA$6.2m. But they may have an indirect interest through a corporate structure that we haven’t picked up on. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Does This Data Suggest About Conifex Timber Insiders?
It doesn’t really mean much that no insider has traded Conifex Timber shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it’d be more encouraging if Conifex Timber insiders bought more shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Conifex Timber.
But note: Conifex Timber 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.