The General Counsel & Corporate Secretary of Toromont Industries Ltd. (TSE:TIH), Lynn Korbak, Just Bought 134.4% More Shares
Investors who take an interest in Toromont Industries Ltd. (TSE:TIH) should definitely note that the General Counsel & Corporate Secretary, Lynn Korbak, recently paid CA$62.50 per share to buy CA$251k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 134.4%, potentially signalling some real optimism.
View our latest analysis for Toromont Industries
The Last 12 Months Of Insider Transactions At Toromont Industries
In the last twelve months, the biggest single sale by an insider was when the Chairman, Robert Ogilvie, sold CA$1.3m worth of shares at a price of CA$69.00 per share. So we know that an insider sold shares at around the present share price of CA$63.58. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year, we can see that insiders have bought 11835 shares worth CA$749k. But insiders sold 21400 shares worth CA$1.5m. In total, Toromont Industries insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Insider Ownership of Toromont Industries
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. Toromont Industries insiders own 3.4% of the company, currently worth about CA$175m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Toromont Industries Tell Us?
The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider, along with high insider ownership, suggest that Toromont Industries insiders are fairly aligned, and optimistic. 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 Toromont Industries may not be the best stock to buy. So you may wish to see this free collection of high quality 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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