Marcel Bourassa Buys Handful Of Shares In Savaria

Savaria Corporation (TSE:SIS) shareholders (or potential shareholders) will be happy to see that the Executive Chairman of the Board, Marcel Bourassa, recently bought a whopping CA$827k worth of stock, at a price of CA$16.53. While that only increased their holding size by 0.4%, it is still a big swing by our standards.

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The Last 12 Months Of Insider Transactions At Savaria

Notably, that recent purchase by Executive Chairman of the Board Marcel Bourassa was not the only time they traded Savaria shares this year. Earlier in the year, they sold shares at a price ofCA$20.63 per share in a -CA$41m transaction. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$16.80. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 143.15k shares for CA$2.5m. On the other hand they divested 2.07m shares, for CA$43m. Over the last year we saw more insider selling of Savaria shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Savaria

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Insider Ownership

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. Savaria insiders own about CA$210m worth of shares (which is 17% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Savaria Insiders?

It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Savaria insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Savaria. At Simply Wall St, we found 1 warning sign for Savaria that deserve your attention before buying any shares.

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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.