Yahoo Finance A CA$460m market cap addition is just what Finning International Inc. (TSE:FTT) insiders like to see after purchasing stock worth CA$744k
Finning International Inc. (TSE:FTT) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 9.1% resulting in a CA$460m addition to the company’s market value. As a result, their original purchase of CA$744k worth of stock is now worth CA$799k.
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.
View our latest analysis for Finning International
The Last 12 Months Of Insider Transactions At Finning International
In the last twelve months, the biggest single purchase by an insider was when President L. Thomson bought CA$291k worth of shares at a price of CA$30.61 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$34.73. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 23.00k shares worth CA$744k. But insiders sold 13.10k shares worth CA$432k. In the last twelve months there was more buying than selling by Finning International insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Finning International is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Finning International Have Sold Stock Recently
There was substantially more insider selling, than buying, of Finning International shares over the last three months. In that time, insiders dumped CA$156k worth of shares. On the flip side, insider Michael McCarthy spent CA$93k on purchasing shares. Generally this level of net selling might be considered a bit bearish.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.4% of Finning International shares, worth about CA$22m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Finning International Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Finning International, in the last three months. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Finning International has 2 warning signs and it would be unwise to ignore these.
Of course Finning International 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, 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.
