Potential Finning International Inc. (TSE:FTT) shareholders may wish to note that the Executive VP & Chief Digital Officer, David Cummings, recently bought CA$420k worth of stock, paying CA$13.00 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 62%.
Finning International Insider Transactions Over The Last Year
Notably, that recent purchase by David Cummings is the biggest insider purchase of Finning International shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$11.42. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
Over the last year, we can see that insiders have bought 87.61k shares worth CA$1.4m. On the other hand they divested 7984 shares, for CA$193k. Overall, Finning International insiders were net buyers last year. They paid about CA$15.71 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Finning International 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.
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. Our data suggests Finning International insiders own 0.4% of the company, worth about CA$6.6m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Finning International Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Finning International insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 2 warning signs for Finning International (1 can't be ignored!) that we believe deserve your full attention.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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