Trade Alert: The Independent Director Of Morneau Shepell Inc. (TSE:MSI), Luc Bachand, Has Just Spent CA$113k Buying 44% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Morneau Shepell Inc. (TSE:MSI) Independent Director, Luc Bachand, recently bought CA$113k worth of stock, for CA$28.23 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 44%.

View our latest analysis for Morneau Shepell

The Last 12 Months Of Insider Transactions At Morneau Shepell

The President Stephen Liptrap made the biggest insider purchase in the last 12 months. That single transaction was for CA$242k worth of shares at a price of CA$26.61 each. That implies that an insider found the current price of CA$29.00 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Morneau Shepell share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 23.50k shares worth CA$646k. But they sold 3.10k shares for CA$96k. In total, Morneau Shepell insiders bought more than they sold over the last year. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Morneau Shepell

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$4.6m worth of Morneau Shepell stock, about 0.2% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Morneau Shepell Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Morneau Shepell insiders are reasonably well aligned, and optimistic for the future. 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. For example, Morneau Shepell has 3 warning signs (and 2 which can't be ignored) we think you should know about.

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.

If you decide to trade Morneau Shepell, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.