Yahoo Finance Insider Buying: The Bank of Montreal (TSE:BMO) Independent Chairman of the Board Just Bought 27% More Shares
Those following along with Bank of Montreal (TSE:BMO) will no doubt be intrigued by the recent purchase of shares by George Cope, Independent Chairman of the Board of the company, who spent a stonking CA$2.2m on stock at an average price of CA$129. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 27%.
See our latest analysis for Bank of Montreal
The Last 12 Months Of Insider Transactions At Bank of Montreal
Notably, that recent purchase by George Cope is the biggest insider purchase of Bank of Montreal shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$131. 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 Montreal share holders is that insiders were buying at near the current price.
Bank of Montreal insiders may have bought shares in the last year, but they didn't sell any. 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!
Bank of Montreal is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Bank of Montreal Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Bank of Montreal insiders own 0.03% of the company, worth about CA$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Bank of Montreal Tell Us?
It is good 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 Bank of Montreal 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. Every company has risks, and we've spotted 1 warning sign for Bank of Montreal you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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