As Goodfellow Inc.'s (TSE:GDL) market cap increased CA$12m, insiders who bought last year may be reflecting on buying more

Insiders who bought Goodfellow Inc. (TSE:GDL) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$12m as a result of the stock's 10% gain over the same period. Put another way, the original CA$158k acquisition is now worth CA$229k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Goodfellow

The Last 12 Months Of Insider Transactions At Goodfellow

The President & CEO Patrick Goodfellow made the biggest insider purchase in the last 12 months. That single transaction was for CA$158k worth of shares at a price of CA$10.56 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$15.25. 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.

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!

Goodfellow is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Goodfellow

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. Goodfellow insiders own about CA$18m worth of shares. That equates to 14% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Goodfellow Insider Transactions Indicate?

The fact that there have been no Goodfellow insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Goodfellow insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Goodfellow and we suggest you have a look.

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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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.