Yahoo Finance How Many Extendicare Inc. (TSE:EXE) Shares Did Insiders Buy, In The Last Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Extendicare Inc. (TSE:EXE), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. 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 Extendicare
Extendicare Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Senior VP & CFO David Bacon bought CA$193k worth of shares at a price of CA$8.10 per share. That implies that an insider found the current price of CA$8.21 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 61525 shares worth CA$448k. In the last twelve months Extendicare insiders were buying shares, but not selling. They paid about CA$7.29 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!
Extendicare 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 Extendicare Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Extendicare. We can see that David Bacon paid CA$193k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Extendicare
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at Extendicare, though insiders do hold about CA$1.2m worth of shares. We might be missing something but that seems like very low insider ownership.
What Might The Insider Transactions At Extendicare Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Extendicare insiders are reasonably well aligned, and optimistic for the future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Extendicare.
Of course Extendicare may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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.
