Trade Alert: Ames Andrew At goeasy Ltd. (TSE:GSY), Has Just Spent CA$89k Buying 41% More Shares

By
Simply Wall St
Published
March 14, 2022
TSX:GSY
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that Ames Andrew, who is a company insider, recently bought CA$89k worth of stock, for CA$132 per share. That purchase might not be huge but it did increase their holding by 41%.

Check out our latest analysis for goeasy

The Last 12 Months Of Insider Transactions At goeasy

The Executive Chairman, David Ingram, made the biggest insider sale in the last 12 months. That single transaction was for CA$992k worth of shares at a price of CA$198 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$128. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 5.17k shares for CA$901k. But insiders sold 19.45k shares worth CA$3.3m. 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!

insider-trading-volume
TSX:GSY Insider Trading Volume March 14th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. goeasy insiders own 23% of the company, currently worth about CA$471m 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.

So What Does This Data Suggest About goeasy Insiders?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, goeasy insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 5 warning signs for goeasy you should be aware of, and 2 of these are significant.

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, but not derivative transactions.

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