Yahoo Finance The Independent Director of Power Corporation of Canada (TSE:POW), Pierre Beaudoin, Just Bought 42% More Shares
Potential Power Corporation of Canada (TSE:POW) shareholders may wish to note that the Independent Director, Pierre Beaudoin, recently bought CA$498k worth of stock, paying CA$26.77 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 42%.
See our latest analysis for Power Corporation of Canada
Power Corporation of Canada Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Robert Orr for CA$1.1m worth of shares, at about CA$22.58 per share. That means that an insider was happy to buy shares at around the current price of CA$26.32. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Power Corporation of Canada insiders bought shares during the last year, they didn't sell. 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!
Power Corporation of Canada 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.
Does Power Corporation of Canada 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. We usually like to see fairly high levels of insider ownership. Power Corporation of Canada insiders own about CA$70m worth of shares. That equates to 0.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Power Corporation of Canada Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Power Corporation of Canada insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Power Corporation of Canada.
But note: Power Corporation of Canada may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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. 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.
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