Even if it's not a huge purchase, we think it was good to see that William Braithwaite, the Independent Director of Morguard Corporation (TSE:MRC) recently shelled out CA$51k to buy stock, at CA$102 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 38%.
The Last 12 Months Of Insider Transactions At Morguard
Notably, that recent purchase by Independent Director William Braithwaite was not the only time they bought Morguard shares this year. They previously made an even bigger purchase of CA$63k worth of shares at a price of CA$125 per share. That means that an insider was happy to buy shares at above the current price of CA$102. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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.
In the last twelve months Morguard insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Morguard is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Morguard 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Morguard insiders own about CA$697m worth of shares (which is 61% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Morguard Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Morguard insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Morguard. Every company has risks, and we've spotted 4 warning signs for Morguard (of which 1 is a bit unpleasant!) you should know about.
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.
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. 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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