Yahoo Finance Have Insiders Been Buying Badger Daylighting Ltd. (TSE:BAD) Shares This Year?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Badger Daylighting Ltd. (TSE:BAD).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Badger Daylighting
The Last 12 Months Of Insider Transactions At Badger Daylighting
Over the last year, we can see that the biggest insider sale was by the Chair of the Board, Glen Roane, for CA$2.1m worth of shares, at about CA$40.90 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$42.80. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 57.4% of Glen Roane's stake. Notably Glen Roane was also the biggest buyer, having purchased CA$3.4m worth of shares.
Over the last year, we can see that insiders have bought 107k shares worth CA$3.4m. But insiders sold 86400 shares worth CA$3.4m. In the last twelve months there was more buying than selling by Badger Daylighting insiders. The average buy price was around CA$31.77. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Badger Daylighting 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.
Insiders at Badger Daylighting Have Sold Stock Recently
The last three months saw significant insider selling at Badger Daylighting. In total, Chair of the Board Glen Roane dumped CA$3.3m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the directors think that the shares are a bargain.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.6% of Badger Daylighting shares, worth about CA$8.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Badger Daylighting Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. Still, insiders don't own a great deal of the stock. So we can't be sure that insiders are optimistic. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Badger Daylighting.
But note: Badger Daylighting 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.
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