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Insider Buying: The North American Construction Group Ltd. (TSE:NOA) Chairman & CEO Just Bought CA$315k Worth Of Shares

Simply Wall St

Investors who take an interest in North American Construction Group Ltd. (TSE:NOA) should definitely note that the Chairman & CEO, Martin Ferron, recently paid CA$12.62 per share to buy CA$315k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.3%.

Check out our latest analysis for North American Construction Group

North American Construction Group Insider Transactions Over The Last Year

Notably, that recent purchase by Martin Ferron is the biggest insider purchase of North American Construction Group shares that we've seen in the last year. That means that even when the share price was higher than CA$11.24 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Martin Ferron.

Martin Ferron bought a total of 38.00k shares over the year at an average price of CA$13.62. You can see the insider transactions (by 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!

TSX:NOA Recent Insider Trading, March 8th 2020

North American Construction Group 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.

Insider Ownership of North American Construction Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 9.9% of North American Construction Group shares, worth about CA$29m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The North American Construction Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in North American Construction Group shares, given these transactions (along with notable insider ownership of the company). 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. At Simply Wall St, we've found that North American Construction Group has 2 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

But note: North American Construction Group 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.

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 editorial-team@simplywallst.com. 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.