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Trade Alert: The Founder & Executive Chair Of Indigo Books & Music Inc. (TSE:IDG), Heather Reisman, Has Just Spent CA$995k Buying 60% More Shares

Simply Wall St
·3 min read

Those following along with Indigo Books & Music Inc. (TSE:IDG) will no doubt be intrigued by the recent purchase of shares by Heather Reisman, Founder & Executive Chair of the company, who spent a stonking CA$995k on stock at an average price of CA$2.09. That increased their holding by a full 60%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

See our latest analysis for Indigo Books & Music

The Last 12 Months Of Insider Transactions At Indigo Books & Music

In fact, the recent purchase by Heather Reisman was the biggest purchase of Indigo Books & Music shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$2.24 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. Happily, the Indigo Books & Music insider decided to buy shares at close to current prices. Heather Reisman was the only individual insider to buy during the last year.

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Heather Reisman purchased 529.30k shares over the year. The average price per share was CA$2.08. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

Indigo Books & Music 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.

Insider Ownership Of Indigo Books & Music

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Indigo Books & Music insiders own about CA$38m worth of shares (which is 62% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Indigo Books & Music Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Indigo Books & Music. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Indigo Books & Music. To that end, you should learn about the 3 warning signs we've spotted with Indigo Books & Music (including 2 which don't sit too well with us).

Of course Indigo Books & Music 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

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