Maple Leaf Foods Independent Director Acquires 326% More Stock

Those following along with Maple Leaf Foods Inc. (TSE:MFI) will no doubt be intrigued by the recent purchase of shares by Andrew Macdonald, Independent Director of the company, who spent a stonking CA$837k on stock at an average price of CA$27.89. That purchase boosted their holding by 326%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for Maple Leaf Foods

The Last 12 Months Of Insider Transactions At Maple Leaf Foods

Over the last year, we can see that the biggest insider sale was by the Chief Information & Technology Officer, Andreas Liris, for CA$1.2m worth of shares, at about CA$30.40 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$27.47. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid CA$856k for 30.80k shares. But insiders sold 83.75k shares worth CA$2.4m. In total, Maple Leaf Foods insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Maple Leaf Foods better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Maple Leaf Foods insiders own 41% of the company, worth about CA$1.4b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Maple Leaf Foods Tell Us?

The stark truth for Maple Leaf Foods is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. 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. Case in point: We've spotted 3 warning signs for Maple Leaf Foods you should be aware of.

But note: Maple Leaf 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 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.