Yahoo Finance Insider Buying: The High Liner Foods Incorporated (TSE:HLF) Chairman Just Bought US$80k Worth Of Shares
Even if it's not a huge purchase, we think it was good to see that Robert Pace, the Chairman of High Liner Foods Incorporated (TSE:HLF) recently shelled out CA$80k to buy stock, at CA$7.25 per share. That purchase might not be huge but it did increase their holding by 17%.
See our latest analysis for High Liner Foods
The Last 12 Months Of Insider Transactions At High Liner Foods
In fact, the recent purchase by Robert Pace was the biggest purchase of High Liner Foods shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$6.11). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 28.05k shares for CA$206k. On the other hand they divested 4250 shares, for CA$38k. In total, High Liner Foods insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
High Liner Foods 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.
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. From our data, it seems that High Liner Foods insiders own 4.8% of the company, worth about CA$9.7m. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About High Liner Foods Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that High Liner Foods insiders are expecting a bright future. 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 that end, you should learn about the 4 warning signs we've spotted with High Liner Foods (including 1 which can't be ignored).
But note: High Liner Foods 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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