Yahoo Finance Have Insiders Been Buying AltaGas Ltd. (TSE:ALA) Shares?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in AltaGas Ltd. (TSE:ALA).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
View our latest analysis for AltaGas
The Last 12 Months Of Insider Transactions At AltaGas
Over the last year, we can see that the biggest insider sale was by the Independent Director, Allan Edgeworth, for CA$784k worth of shares, at about CA$19.13 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$15.51. So it may not tell us anything about how insiders feel about the current share price. Allan Edgeworth was the only individual insider to sell over the last year. Notably Allan Edgeworth was also the biggest buyer, having purchased CA$2.9m worth of shares.
In the last twelve months insiders purchased 192.12k shares for CA$2.9m. On the other hand they divested 41000 shares, for CA$784k. In the last twelve months there was more buying than selling by AltaGas insiders. They paid about CA$14.95 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by individuals) 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at AltaGas Have Bought Stock Recently
Over the last quarter, AltaGas insiders have spent a meaningful amount on shares. In total, insiders bought CA$1.0m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does AltaGas Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.7% of AltaGas shares, worth about CA$30m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The AltaGas Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in AltaGas shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AltaGas. At Simply Wall St, we've found that AltaGas has 5 warning signs (2 don't sit too well with us!) that deserve your attention before going any further with your analysis.
Of course AltaGas 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. 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. Thank you for reading.
