Yahoo Finance Are Insiders Buying Labrador Iron Ore Royalty Corporation (TSE:LIF) Stock?
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 shareholders might well want to know whether insiders have been buying or selling shares in Labrador Iron Ore Royalty Corporation (TSE:LIF).
What Is Insider Buying?
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 logic dictates you should pay some attention to whether insiders are buying or selling shares. 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.
Check out our latest analysis for Labrador Iron Ore Royalty
The Last 12 Months Of Insider Transactions At Labrador Iron Ore Royalty
In the last twelve months, the biggest single purchase by an insider was when President John Tuer bought CA$289k worth of shares at a price of CA$28.86 per share. That means that even when the share price was higher than CA$23.86 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$574k for 21200 shares. But insiders sold 8000 shares worth CA$221k. In the last twelve months there was more buying than selling by Labrador Iron Ore Royalty insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Labrador Iron Ore Royalty is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Labrador Iron Ore Royalty Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Labrador Iron Ore Royalty. President John Tuer bought CA$151k worth in that time. However, Independent Director William Corcoran netted CA$119k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Labrador Iron Ore Royalty insiders have about 0.1% of the stock, worth approximately CA$1.6m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Labrador Iron Ore Royalty Insiders?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Labrador Iron Ore Royalty insiders are doubting the company. Of course, the future is what matters most. So if you are interested in Labrador Iron Ore Royalty, you should check out this free report on analyst forecasts for the company.
But note: Labrador Iron Ore Royalty 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.
