David Sobey Of Empire Just Spent CA$1.6m On A Handful Of Shares

Those following along with Empire Company Limited (TSE:EMP.A) will no doubt be intrigued by the recent purchase of shares by insider David Sobey, who spent a stonking CA$1.6m on stock at an average price of CA$54.40. While that only increased their holding size by 0.1%, it is still a big swing by our standards.

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Empire Insider Transactions Over The Last Year

Notably, that recent purchase by David Sobey is the biggest insider purchase of Empire shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$56.45. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 31.10k shares for CA$1.7m. But they sold 67.02k shares for CA$2.8m. In total, Empire insiders sold more than they bought 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!

View our latest analysis for Empire

I will like Empire better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Empire Boast High 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. Empire insiders own about CA$1.8b worth of shares (which is 14% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Empire Insiders?

The recent insider purchases are heartening. 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, Empire insiders are reasonably well aligned, and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Empire.

Of course Empire 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 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.