Trade Alert: The President & COO - North America Of Saputo Inc. (TSE:SAP), Carl Colizza, Has Just Spent CA$252k Buying 25% More Shares

By
Simply Wall St
Published
February 18, 2022
TSX:SAP
Source: Shutterstock

Potential Saputo Inc. (TSE:SAP) shareholders may wish to note that the President & COO - North America, Carl Colizza, recently bought CA$252k worth of stock, paying CA$30.33 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 25%.

Check out our latest analysis for Saputo

Saputo Insider Transactions Over The Last Year

The insider Emanuele Saputo made the biggest insider purchase in the last 12 months. That single transaction was for CA$15m worth of shares at a price of CA$36.50 each. That means that an insider was happy to buy shares at above the current price of CA$30.87. 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 always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 422.85k shares for CA$15m. But they sold 1.25k shares for CA$45k. In the last twelve months there was more buying than selling by Saputo insiders. 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!

insider-trading-volume
TSX:SAP Insider Trading Volume February 18th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Saputo Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.8% of Saputo shares, worth about CA$99m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Saputo Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Saputo shares, given these transactions (along with notable insider ownership of the company). While we like knowing 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. For example, Saputo has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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