Potential The Bank of Nova Scotia (TSE:BNS) shareholders may wish to note that the Group Head of International Banking & Digital Transformation, Ignacio Deschamps, recently bought CA$299k worth of stock, paying CA$85.40 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 70%, potentially signalling some real optimism.
Bank of Nova Scotia Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Lynn Patterson for CA$495k worth of shares, at about CA$78.60 per share. That means that an insider was happy to buy shares at around the current price of CA$86.12. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Bank of Nova Scotia share holders is that insiders were buying at near the current price.
In the last twelve months Bank of Nova Scotia insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.
Does Bank of Nova Scotia Boast High Insider Ownership?
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. Bank of Nova Scotia insiders own about CA$29m worth of shares. That equates to 0.03% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Bank of Nova Scotia Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Bank of Nova Scotia we think they are probably pretty confident of a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Bank of Nova Scotia 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.