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Those following along with Saputo Inc. (TSE:SAP) will no doubt be intrigued by the recent purchase of shares by insider Joey Saputo, who spent a stonking CA$34m on stock at an average price of CA$24.32. That increased their holding by a full 882%, 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 Saputo
The Last 12 Months Of Insider Transactions At Saputo
The insider, Francesco Saputo, made the biggest insider sale in the last 12 months. That single transaction was for CA$1.1b worth of shares at a price of CA$29.12 each. While insider selling is a negative, to us, it is more negative if the shares are sold 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$24.33. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 27.96m shares worth CA$800m. On the other hand they divested 40.00m shares, for CA$1.1b. All up, insiders sold more shares in Saputo than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Saputo
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Saputo insiders own 39% of the company, currently worth about CA$4.0b based on the recent share price. 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 Saputo Insiders?
The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Saputo. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Saputo.