Pleasing Signs As A Number Of Insiders Buy West Fraser Timber Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in West Fraser Timber Co. Ltd.'s (TSE:WFG) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for West Fraser Timber
West Fraser Timber Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Director Eric Butler for CA$474k worth of shares, at about CA$94.72 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$92.28). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
West Fraser Timber insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 West Fraser Timber Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at West Fraser Timber. Not only was there no selling that we can see, but they collectively bought CA$601k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of West Fraser Timber
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. West Fraser Timber insiders own about CA$140m worth of shares (which is 1.8% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The West Fraser Timber Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about West Fraser Timber. Nice! 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 West Fraser Timber 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
