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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Sun Life Financial Inc. (TSE:SLF).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Sun Life Financial Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President of Sun Life Financial – United States Daniel Fishbein for CA$134k worth of shares, at about CA$45.39 per share. So it’s clear an insider wanted to buy, at around the current price. 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. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
Over the last year, we can see that insiders have bought 4.94k shares worth CA$235k. In the last twelve months there was more buying than selling by Sun Life Financial insiders. They paid about CA$47.50 on average. Although they bought at below the recent price of CA$50.25 per share, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Sun Life Financial Have Bought Stock Recently
We saw some Sun Life Financial insider buying shares in the last three months. Insiders purchased CA$30k worth of shares in that period. It’s great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does Sun Life Financial Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Sun Life Financial insiders own 0.04% of the company, worth about CA$11m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Do The Sun Life Financial Insider Transactions Indicate?
We note a that there has been a tad more insider buying than selling, recently. But the net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Overall we don’t see anything to make us think Sun Life Financial insiders are doubting the company, and they do own shares. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Sun Life Financial.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.