Investors who take an interest in West Fraser Timber Co. Ltd. (TSE:WFT) should definitely note that the CEO, President & Corporate Director, Raymond Ferris, recently paid CA$53.69 per share to buy CA$377k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 33%.
West Fraser Timber Insider Transactions Over The Last Year
Notably, that recent purchase by Raymond Ferris is the biggest insider purchase of West Fraser Timber shares that we’ve seen in the last year. That means that even when the share price was higher than CA$53.30 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While West Fraser Timber insiders bought shares last year, they didn’t sell. They paid about CA$58.66 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
West Fraser Timber is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does West Fraser Timber Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. It appears that West Fraser Timber insiders own 2.1% of the company, worth about CA$76m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About West Fraser Timber Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. Insiders likely see value in West Fraser Timber shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for West Fraser Timber.
But note: West Fraser Timber may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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