Positive Signs As Multiple Insiders Buy High Liner Foods Stock
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 High Liner Foods Incorporated (TSE:HLF), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for High Liner Foods
The Last 12 Months Of Insider Transactions At High Liner Foods
In the last twelve months, the biggest single sale by an insider was when the Independent Director, David Henniger, sold CA$86k worth of shares at a price of CA$14.30 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$10.95). So it may not tell us anything about how insiders feel about the current share price. David Henniger was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid CA$195k for 14.60k shares. But they sold 6.35k shares for CA$90k. In total, High Liner Foods insiders bought more than they sold over the last year. Their average price was about CA$13.38. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
High Liner Foods is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
High Liner Foods Insiders Bought Stock Recently
There was some insider buying at High Liner Foods over the last quarter. Insiders shelled out CA$50k for shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership Of High Liner Foods
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that High Liner Foods insiders own about CA$11m worth of shares (which is 3.0% 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.
So What Do The High Liner Foods Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest High Liner Foods insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for High Liner Foods you should be aware of, and 1 of these doesn't sit too well with us.
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 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.
