Insider Buying: The Morguard Corporation (TSE:MRC) Lead Independent Director Just Bought 11% More Shares
Investors who take an interest in Morguard Corporation (TSE:MRC) should definitely note that the Lead Independent Director, Bruce Robertson, recently paid CA$133 per share to buy CA$266k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 11%.
Check out our latest analysis for Morguard
The Last 12 Months Of Insider Transactions At Morguard
Notably, that recent purchase by Lead Independent Director Bruce Robertson was not the only time they bought Morguard shares this year. They previously made an even bigger purchase of CA$600k worth of shares at a price of CA$120 per share. That implies that an insider found the current price of CA$131 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Morguard insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid CA$1.7m for 14.10k shares. But insiders sold 1.40k shares worth CA$165k. In the last twelve months there was more buying than selling by Morguard insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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.
Insider Ownership of Morguard
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Morguard insiders own 61% of the company, worth about CA$889m. 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 Morguard Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. 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. In terms of investment risks, we've identified 2 warning signs with Morguard and understanding these should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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. 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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