Even if it’s not a huge purchase, we think it was good to see that Greg Palaschuk, the of Finning International Inc. (TSE:FTT) recently shelled out CA$56k to buy stock, at CA$21.78 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 17%.
Finning International Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive VP & Chief Digital Officer David Cummings bought CA$400k worth of shares at a price of CA$24.11 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$22.08). 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 35805 shares for CA$842k. On the other hand they divested 5484 shares, for CA$128k. In total, Finning International insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Insider Ownership of Finning International
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. Our data indicates that Finning International insiders own about CA$11m worth of shares (which is 0.3% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Finning International Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Finning International insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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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