What Do These Insiders Know That You Don’t?
One indicator for beating the market, which has held up extremely well over time is: if executives, directors or others with inside knowledge of a public company are buying or selling shares, investors should consider doing the same thing. This is because these insiders have unique insights into their own companies compared to individual investors. Should you followsuit? Below, I’ve selected three TSX companies which insiders have recently accumulated more shares in.
Canacol Energy Ltd (TSX:CNE)
Canacol Energy Ltd. primarily engages in the exploration, development, appraisal, and production of hydrocarbons in Colombia and Ecuador. Founded in 1970, and currently lead by Charle Gamba, the company now has 279 employees and with the company’s market cap sitting at CAD CA$782.73M, it falls under the small-cap category.
Canacol Energy Ltd’s (TSX:CNE) insiders have invested 53,144 shares in the small-cap stocks within the past three months. In total, individual insiders own over 4 million shares in the business, which makes up around 2.31% of total shares outstanding.
The insider that recently bought more shares is Gregory Elliott (board member) .
In the upcoming year, analysts expect a robust revenue growth of 42.43% to drive the meaningful bottom-line growth of 129.93%. CNE’s positive future sentiment could be a key driver of insiders ramping their shares if they believe the growth is not yet reflected in the current share price. More detail on Canacol Energy here.
SDX Energy Inc. (TSXV:SDX)
SDX Energy Inc. engages in the exploration, development, and production of oil and gas primarily in Egypt and Morocco. The company size now stands at 21 people and has a market cap of CAD CA$169.73M, putting it in the small-cap group.
SDX Energy Inc’s (TSXV:SDX) insiders have invested 225,000 shares in the small-cap stocks within the past three months. In total, individual insiders own over 31 million shares in the business, which makes up around 15.03% of total shares outstanding.
The entity that bought on the open market in the last three months was
MEA Energy Investment Company Limited. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
With revenues predicted to grow 155.87%, over the next three years from today’s level, which is an underlying driver of the impressive earnings growth of 86.70%, insiders may be buying based on SDX’s optimistic outlook which they believe are not yet priced into the stock. More detail on SDX Energy here.
Martinrea International Inc. (TSX:MRE)
Martinrea International Inc. designs, engineers, manufactures, and sells metal parts, assemblies and modules, fluid management systems, and aluminum products primarily to the automotive sector in North America, Europe, and internationally. Founded in 1987, and headed by CEO Pat D’Eramo, the company size now stands at 15,000 people and with the stock’s market cap sitting at CAD CA$1.31B, it comes under the small-cap group.
Martinrea International Inc’s (TSX:MRE) insiders have invested 22,941 shares in the large-cap stocks within the past three months. In total, individual insiders own over 1 million shares in the business, which makes up around 1.22% of total shares outstanding.
The following insiders have recently increased their company holdings: Juan Jose Nardiz (management) . and Robert Fairchild (management) .
With a noteworthy forecasted bottom-line growth rate of 22.04% in the upcoming year, the present positive sentiment around the company’s future may be a main driver for insiders to ramp up their own shareholdings, if they believe this growth prospect has not yet been accounted for in the current share price. Dig deeper into Martinrea International here.
For more stocks with high, positive trading volume by insiders, explore this interactive list of stocks with recent insider buying.
To help readers see pass 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.
