Yahoo Finance Have Insiders Been Buying SEMAFO Inc. (TSE:SMF) Shares?
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 before you buy or sell SEMAFO Inc. (TSE:SMF), you may well want to know whether insiders have been buying or selling.
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, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. 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 SEMAFO
The Last 12 Months Of Insider Transactions At SEMAFO
Chief Financial Officer Martin Milette made the biggest insider purchase in the last 12 months. That single transaction was for CA$103k worth of shares at a price of CA$3.42 each. That means that even when the share price was higher, an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
Over the last year, we can see that insiders have bought 37.20k shares worth CA$127k. In the last twelve months there was more buying than selling by SEMAFO insiders. The average buy price was around CA$3.42. These transactions suggest that insiders have considered the current price of CA$2.92 attractive. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like SEMAFO better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does SEMAFO Boast High 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. 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, SEMAFO insiders have about 0.2% of the stock, worth approximately CA$2.4m. I generally like to see higher levels of ownership.
So What Do The SEMAFO Insider Transactions Indicate?
The fact that there have been no SEMAFO insider transactions recently certainly doesn’t bother us. 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 SEMAFO insiders are doubting the company. Of course, the future is what matters most. So if you are interested in SEMAFO, you should check out this free report on analyst forecasts for the company.
Of course SEMAFO may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
