Linamar Insiders Added CA$3.10m Of Stock To Their Holdings

Multiple insiders secured a larger position in Linamar Corporation (TSE:LNR) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Linamar

The Last 12 Months Of Insider Transactions At Linamar

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of the Board & CEO Linda Hasenfratz bought CA$2.9m worth of shares at a price of CA$57.89 per share. That means that an insider was happy to buy shares at around the current price of CA$64.05. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 53.46k shares worth CA$3.1m. On the other hand they divested 16.19k shares, for CA$978k. Overall, Linamar insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Linamar is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Linamar Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Linamar. In total, CTO, Executive VP of Sales & Marketing and Non-Independent Director Mark Stoddart sold CA$201k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Linamar

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. Linamar insiders own 35% of the company, currently worth about CA$1.4b 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.

What Might The Insider Transactions At Linamar Tell Us?

An insider hasn't bought Linamar stock in the last three months, but there was some selling. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. Of course, the future is what matters most. So if you are interested in Linamar, you should check out this free report on analyst forecasts for the company.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.