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A number of insiders bought Tornado Global Hydrovacs Ltd. (CVE:TGH) stock last year, which is great news for shareholders

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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Tornado Global Hydrovacs Ltd. (CVE:TGH), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Tornado Global Hydrovacs

Tornado Global Hydrovacs Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Chairman, Kenneth Nelson, for CA$142k worth of shares, at about CA$0.57 per share. So we know that an insider sold shares at around the present share price of CA$0.55. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Kenneth Nelson was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 481.70k shares worth CA$196k. On the other hand they divested 248.34k shares, for CA$142k. In total, Tornado Global Hydrovacs insiders bought more than they sold over the last year. The average buy price was around CA$0.41. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

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.

Tornado Global Hydrovacs Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Tornado Global Hydrovacs. In that period insiders spent CA$190k on shares. But Independent Non-Executive Chairman Kenneth Nelson sold CA$142k worth. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Tornado Global Hydrovacs insiders own about CA$4.6m worth of shares (which is 6.7% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Tornado Global Hydrovacs Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Tornado Global Hydrovacs insiders are doubting the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Tornado Global Hydrovacs has 3 warning signs (and 1 which is concerning) we think you should know about.

Of course Tornado Global Hydrovacs 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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