South Bow Insiders Placed Bullish Bets Worth US$4.46m

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in South Bow Corporation's (TSE:SOBO) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At South Bow

In the last twelve months, the biggest single purchase by an insider was when Senior VP & General Counsel Lori Muratta bought CA$516k worth of shares at a price of CA$34.44 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$35.98. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid CA$4.5m for 128.43k shares. On the other hand they divested 83.00 shares, for CA$3.0k. In total, South Bow insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for South Bow

South Bow is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does South Bow 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.1% of South Bow shares, worth about CA$11m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The South Bow Insider Transactions Indicate?

It doesn't really mean much that no insider has traded South Bow shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in South Bow and their transactions don't cause us concern. 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. To help with this, we've discovered 2 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in South Bow.

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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.