Bullish insiders at The Bank of Nova Scotia (TSE:BNS) loaded up on CA$1.0m of stock earlier this year

By
Simply Wall St
Published
March 10, 2022
TSX:BNS
Source: Shutterstock

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 The Bank of Nova Scotia (TSE:BNS), it sends a favourable message to the company's shareholders.

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 Bank of Nova Scotia

Bank of Nova Scotia Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Lynn Patterson bought CA$495k worth of shares at a price of CA$78.60 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$92.65. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Bank of Nova Scotia insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
TSX:BNS Insider Trading Volume March 10th 2022

Bank of Nova Scotia is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Bank of Nova Scotia

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Bank of Nova Scotia insiders own 0.03% of the company, worth about CA$31m. 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 Do The Bank of Nova Scotia Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Bank of Nova Scotia and we see no evidence to suggest they are worried about the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Bank of Nova Scotia.

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.

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