Yahoo Finance As Boralex Inc. (TSE:BLX) hits CA$4.0b market cap, insiders may be dismayed about not purchasing higher quantities
Insiders who bought Boralex Inc. (TSE:BLX) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$214m as a result of the stock's 5.6% gain over the same period. In other words, the original CA$178k purchase is now worth CA$188k.
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 Boralex
The Last 12 Months Of Insider Transactions At Boralex
Over the last year, we can see that the biggest insider purchase was by Independent Director Zin Smati for CA$168k worth of shares, at about CA$37.42 per share. That implies that an insider found the current price of CA$39.40 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Boralex share holders is that insiders were buying at near the current price.
In the last twelve months Boralex insiders were buying shares, but not selling. 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.
Insider Ownership of Boralex
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. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Boralex insiders own 0.3% of the company, worth about CA$12m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Boralex Tell Us?
The fact that there have been no Boralex insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Boralex and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Boralex (of which 1 is concerning!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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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.