How Many Saputo Inc. (TSE:SAP) Shares Did Insiders Buy, In The Last Year?
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 Saputo Inc. (TSE:SAP), you may well want to know whether insiders have been buying or selling.
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, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Saputo
The Last 12 Months Of Insider Transactions At Saputo
The Chief Acquisition & Strategic Development Officer Martin Gagnon made the biggest insider purchase in the last 12 months. That single transaction was for CA$198k worth of shares at a price of CA$33.00 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$39.38. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid CA$818k for 24.36k shares. But insiders sold 3.98k shares worth CA$149k. Overall, Saputo insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Saputo is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Have Saputo Insiders Traded Recently?
In the last quarter we saw President & COO - North America and Dairy Division (USA) Carl Colizza spend CA$149k on shares. But that was only a smidgen more than the CA$149k worth of sales. Overall, we don't think these recent trades are particularly informative, one way or the other.
Does Saputo Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Saputo insiders own 0.8% of the company, worth about CA$125m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Saputo Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Saputo insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Saputo. In terms of investment risks, we've identified 1 warning sign with Saputo and understanding it should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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. 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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