Positive Signs As Multiple Insiders Buy Tidewater Renewables Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Tidewater Renewables Ltd.'s (TSE:LCFS) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Tidewater Renewables
The Last 12 Months Of Insider Transactions At Tidewater Renewables
Over the last year, we can see that the biggest insider purchase was by Interim CEO & Chairman Robert Colcleugh for CA$249k worth of shares, at about CA$8.70 per share. That means that an insider was happy to buy shares at above the current price of CA$6.84. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 30.62k shares worth CA$268k. But insiders sold 4.79k shares worth CA$53k. In total, Tidewater Renewables insiders bought more than they sold over the last year. 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!
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.
Are Tidewater Renewables Insiders Buying Or Selling?
Chief Legal Officer & Corporate Secretary Bryan Morin bought just CA$4.1k worth of shares in that time. That's not much at all. Overall, we don't think these recent trades are particularly informative, one way or the other.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about CA$319k worth of Tidewater Renewables shares. We might be missing something but that seems like very low insider ownership.
So What Do The Tidewater Renewables Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Tidewater Renewables insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Tidewater Renewables and we suggest you have a look.
But note: Tidewater Renewables may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
