Have Insiders Been Buying IBI Group Inc. (TSE:IBG) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in IBI Group Inc. (TSE:IBG).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
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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The Last 12 Months Of Insider Transactions At IBI Group
Over the last year, we can see that the biggest insider sale was by Independent Chairman Dale Richmond for CA$112k worth of shares, at about CA$5.61 per share. That is hardly a positive sign, even though it took place above the latest price (CA$4.11). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Dale Richmond.
In the last twelve months insiders purchased 46.00k shares for CA$226k. On the other hand they divested 25.40k shares, for CA$143k. Overall, IBI Group insiders were net buyers last year. Their average price was about CA$4.91. I’d consider this a positive as it suggests insiders see value at around the current price, which is CA$4.11. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at IBI Group Have Bought Stock Recently
There was some insider buying at IBI Group over the last quarter. CEO & Director Scott Stewart purchased CA$36k worth of shares in that period. It’s great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Based on our data, IBI Group insiders have about 1.6% of the stock, worth approximately CA$2.5m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.
So What Does This Data Suggest About IBI Group Insiders?
We note a that there has been a tad more insider buying than selling, recently. But the difference isn’t much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it’d be more encouraging if IBI Group insiders bought more shares in the company. 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 IBI Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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 editorial-team@simplywallst.com.
