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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Bird Construction Inc. (TSE:BDT).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Bird Construction Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Vice President of Industrial Gilles Royer bought CA$310k worth of shares at a price of CA$7.56 per share. That means that even when the share price was higher, an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. It’s not at all bad to see insiders buy shares at or above current prices.
Happily, we note that in the last year insiders bought 79.02k shares for a total of CA$602k. Overall, Bird Construction insiders were net buyers last year. They paid about CA$7.62 on average. This is nice to see since it implies that insiders might see value around current prices (around CA$6.69). The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that Bird Construction insiders own about CA$9.4m worth of shares (which is 3.3% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Bird Construction Insiders?
The fact that there have been no Bird Construction insider transactions recently certainly doesn’t bother us. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it’d be more encouraging if Bird Construction insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in Bird Construction, you should check out this free report on analyst forecasts for the company.
But note: Bird Construction 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.