Yahoo Finance goeasy Ltd. (TSE:GSY) Insiders Increased Their Holdings
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell goeasy Ltd. (TSE:GSY), you may well want to know whether insiders have been buying or selling.
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, such insiders must disclose their trading activities, and not trade on inside information.
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. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
See our latest analysis for goeasy
The Last 12 Months Of Insider Transactions At goeasy
In the last twelve months, the biggest single purchase by an insider was when Director David Appel bought CA$1.8m worth of shares at a price of CA$41.42 per share. So it’s clear an insider wanted to buy, even at a higher 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. It’s not at all bad to see insiders buy shares at or above current prices.
Over the last year, we can see that insiders have bought 92.15k shares worth CA$3.7m. But insiders sold 25.45k shares worth CA$1.1m. In total, goeasy insiders bought more than they sold over the last year. The average buy price was around CA$40.26. This is nice to see since it implies that insiders might see value around current prices (around CA$31.62). You can see the insider transactions over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 goeasy Have Bought Stock Recently
It’s good to see that goeasy insiders have made notable investments in the company’s shares. Not only was there no selling that we can see, but they collectively bought CA$3.6m worth of shares. That shows some optimism about the company’s future.
Does goeasy Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. goeasy insiders own about CA$124m worth of shares (which is 26% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About goeasy Insiders?
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 goeasy insiders are well aligned, and quite possibly think the share price is too low. That’s what I like to see! Of course, the future is what matters most. So if you are interested in goeasy, you should check out this free report on analyst forecasts for the company.
Of course goeasy may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
