Insider Stock Buying Reaches CA$1.7m On Interfor
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Interfor Corporation's (TSE:IFP) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Interfor
Interfor Insider Transactions Over The Last Year
The insider Eric Larouche made the biggest insider purchase in the last 12 months. That single transaction was for CA$360k worth of shares at a price of CA$33.01 each. That means that even when the share price was higher than CA$24.98 (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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Interfor insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$23.92 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by companies and 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Interfor Have Bought Stock Recently
It's good to see that Interfor insiders have made notable investments in the company's shares. In total, insiders bought CA$379k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership Of Interfor
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.8% of Interfor shares, worth about CA$11m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Interfor Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Interfor 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. Be aware that Interfor is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...
Of course Interfor may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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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