Patrick Ens Spends CA$526k On goeasy Shares

Investors who take an interest in goeasy Ltd. (TSE:GSY) should definitely note that insider Patrick Ens recently paid CA$173 per share to buy CA$526k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for goeasy

The Last 12 Months Of Insider Transactions At goeasy

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, David Ingram, for CA$4.7m worth of shares, at about CA$158 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$173. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 7.7% of David Ingram's holding.

In the last twelve months insiders purchased 3.57k shares for CA$601k. But they sold 115.26k shares for CA$20m. All up, insiders sold more shares in goeasy than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of goeasy

For a common shareholder, it is worth checking how many shares are held by company 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. goeasy insiders own about CA$616m worth of shares (which is 21% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At goeasy Tell Us?

The insider sales have outweighed the insider buying, at goeasy, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since goeasy is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in goeasy.

But note: goeasy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.