Yahoo Finance Trade Alert: The Independent Chairman of the Board Of CI Financial Corp. (TSE:CIX), William Holland, Has Just Spent CA$738k Buying A Few More Shares
CI Financial Corp. (TSE:CIX) shareholders (or potential shareholders) will be happy to see that the Independent Chairman of the Board, William Holland, recently bought a whopping CA$738k worth of stock, at a price of CA$29.51. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.3%.
See our latest analysis for CI Financial
CI Financial Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Chairman of the Board William Holland was not their only acquisition of CI Financial shares this year. They previously made an even bigger purchase of CA$2.4m worth of shares at a price of CA$16.25 per share. We do like to see buying, but this purchase was made at well below the current price of CA$29.81. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid CA$20m for 1.05m shares. On the other hand they divested 3.38k shares, for CA$66k. Overall, CI Financial insiders were net buyers during the last year. They paid about CA$18.84 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of CI Financial
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. CI Financial insiders own about CA$315m worth of shares (which is 5.4% 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.
What Might The Insider Transactions At CI Financial Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about CI Financial. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 4 warning signs for CI Financial (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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