It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in CanWel Building Materials Group Ltd. (TSE:CWX).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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CanWel Building Materials Group Insider Transactions Over The Last Year
Chairman & CEO Amardeip Doman made the biggest insider purchase in the last 12 months. That single transaction was for CA$236k worth of shares at a price of CA$6.73 each. That means that even when the share price was higher, an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
In the last twelve months insiders purchased 193.14k shares for CA$1.1m. But they sold 12.50k for CA$90k. In the last twelve months there was more buying than selling by CanWel Building Materials Group insiders. They paid about CA$5.73 on average. This is nice to see since it implies that insiders might see value around current prices (around CA$4.98). You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
CanWel Building Materials Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at CanWel Building Materials Group Have Bought Stock Recently
It’s good to see that CanWel Building Materials Group insiders have made notable investments in the company’s shares. Overall, 7 insiders shelled out CA$395k for shares in the company — and none sold. This could be interpreted as suggesting a positive outlook.
Does CanWel Building Materials Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our data indicates that CanWel Building Materials Group insiders own about CA$11m worth of shares (which is 2.9% of the company). Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Does This Data Suggest About CanWel Building Materials Group Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of CanWel Building Materials Group we think they are probably pretty confident of a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.