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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Stella-Jones Inc. (TSE:SJ), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Stella-Jones
The Last 12 Months Of Insider Transactions At Stella-Jones
Over the last year, we can see that the biggest insider sale was by the Independent Director, James Manzi, for CA$464k worth of shares, at about CA$92.79 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$70.73. So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 20.67k shares for CA$1.5m. On the other hand they divested 15.91k shares, for CA$1.4m. Overall, Stella-Jones insiders were net buyers during the last year. 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!
Stella-Jones is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Stella-Jones Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Stella-Jones. Overall, eight insiders shelled out CA$1.1m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Stella-Jones insiders own about CA$8.4m worth of shares (which is 0.2% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Stella-Jones Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Stella-Jones insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Stella-Jones (including 1 which is significant).