Interfor Insiders Placed Bullish Bets Worth CA$1.64m

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Interfor Corporation's (TSE:IFP) instance, it's good 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Interfor

The Last 12 Months Of Insider Transactions At Interfor

Over the last year, we can see that the biggest insider purchase was by Executive Vice President of U.S. Operations Simon Luxmoore for CA$264k worth of shares, at about CA$22.42 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$20.76). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Interfor insiders were buying shares, but not selling. 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!

Interfor is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Interfor Have Bought Stock Recently

Over the last quarter, Interfor insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$212k worth of shares. This is a positive in our book as it implies some confidence.

Does Interfor Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that Interfor insiders own about CA$9.6m worth of shares (which is 0.9% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Interfor Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Interfor insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Interfor and understanding this should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.