Stock Analysis

How Many High Liner Foods Incorporated (TSE:HLF) Shares Did Insiders Buy, In The Last Year?

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TSX:HLF
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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell High Liner Foods Incorporated (TSE:HLF), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for High Liner Foods

The Last 12 Months Of Insider Transactions At High Liner Foods

Over the last year, we can see that the biggest insider purchase was by Independent Chairman Robert Pace for CA$130k worth of shares, at about CA$7.20 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$10.57), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 53.48k shares for CA$387k. But they sold 4.13k shares for CA$45k. Overall, High Liner Foods insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
TSX:HLF Insider Trading Volume January 12th 2021

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

High Liner Foods Insiders Are Selling The Stock

We have seen a bit of insider selling at High Liner Foods, over the last three months. insider Matthew Hennigar sold just CA$45k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Does High Liner Foods Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that High Liner Foods insiders own about CA$9.8m worth of shares (which is 2.8% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About High Liner Foods Insiders?

We did not see any insider buying in the last three months, but we did see selling. However, the sales are not big enough to concern us at all. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if High Liner Foods insiders bought more shares in the company. 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. To help with this, we've discovered 2 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in High Liner Foods.

But note: High Liner Foods 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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