David Mindell Spends CA$2.9m Buying A & W Food Services of Canada Shares

Those following along with A & W Food Services of Canada Inc. (TSE:AW) will no doubt be intrigued by the recent purchase of shares by insider David Mindell, who spent a stonking CA$2.9m on stock at an average price of CA$38.53. While that only increased their holding size by 2.5%, it is still a big swing by our standards.

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The Last 12 Months Of Insider Transactions At A & W Food Services of Canada

In fact, the recent purchase by David Mindell was the biggest purchase of A & W Food Services of Canada shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$38.50). 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 202.22k shares worth CA$7.5m. But insiders sold 35.62k shares worth CA$1.2m. In total, A & W Food Services of Canada insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for A & W Food Services of Canada

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that A & W Food Services of Canada insiders own 38% of the company, worth about CA$348m. 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 A & W Food Services of Canada Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about A & W Food Services of Canada. Nice! 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. For example - A & W Food Services of Canada has 2 warning signs we think you should be aware of.

Of course A & W Food Services of Canada 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.