Stock Analysis

Mary-Ann Bell Is The Independent Director of SNC-Lavalin Group Inc. (TSE:SNC) And They Just Picked Up 38% More Shares

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TSX:SNC
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Even if it's not a huge purchase, we think it was good to see that Mary-Ann Bell, the Independent Director of SNC-Lavalin Group Inc. (TSE:SNC) recently shelled out CA$100k to buy stock, at CA$26.41 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 38%.

Check out our latest analysis for SNC-Lavalin Group

SNC-Lavalin Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Michael Pedersen for CA$483k worth of shares, at about CA$19.37 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$29.34. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

SNC-Lavalin Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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TSX:SNC Insider Trading Volume March 18th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does SNC-Lavalin Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests SNC-Lavalin Group insiders own 0.1% of the company, worth about CA$5.4m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At SNC-Lavalin Group Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on SNC-Lavalin Group stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for SNC-Lavalin Group (of which 1 shouldn't be ignored!) you should know about.

But note: SNC-Lavalin Group 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.

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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