Insider Stock Buying Reaches CA$2.15m On Stantec

Over the last year, a good number of insiders have significantly increased their holdings in Stantec Inc. (TSE:STN). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Stantec

Stantec Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Gordon Johnston for CA$1.1m worth of shares, at about CA$104 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$113. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Stantec insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid CA$2.1m for 19.99k shares. But insiders sold 5.40k shares worth CA$608k. In the last twelve months there was more buying than selling by Stantec insiders. 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!

Stantec is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Stantec Insiders Bought Stock Recently

Over the last quarter, Stantec insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$594k worth of shares. This makes one think the business has some good points.

Insider Ownership Of Stantec

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Stantec insiders own 0.3% of the company, worth about CA$38m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Stantec Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Stantec insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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. Case in point: We've spotted 2 warning signs for Stantec you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.