It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Jamieson Wellness Inc. (TSE:JWEL), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
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.
Jamieson Wellness Insider Transactions Over The Last Year
Chairman of the Board David Williams made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.2m worth of shares at a price of CA$24.70 each. That means that an insider was happy to buy shares at around the current price of CA$25.90. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Jamieson Wellness insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 65800 shares for CA$1.5m. On the other hand they divested 7000 shares, for CA$166k. In total, Jamieson Wellness insiders bought more than they sold over the last year. 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!
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 Jamieson Wellness Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Jamieson Wellness. Chairman of the Board David Williams spent CA$1.2m on stock. But we did see Executive Vice President of Global Retail Sales & Marketing Don Bird sell shares worth CA$124k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Does Jamieson Wellness Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Jamieson Wellness insiders own 2.1% of the company, worth about CA$22m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Jamieson Wellness Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Jamieson Wellness shares, given these transactions (along with notable insider ownership of 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 Jamieson Wellness 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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