Stella-Jones Insiders Placed Bullish Bets Worth CA$1.07m

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Stella-Jones Inc.'s (TSE:SJ) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Stella-Jones

The insider, James Manzi, made the biggest insider sale in the last 12 months. That single transaction was for CA$464k worth of shares at a price of CA$92.79 each. 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$80.10. So it may not shed much light on insider confidence at current levels. James Manzi was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid CA$1.1m for 15.17k shares. But they sold 6.00k shares for CA$530k. Overall, Stella-Jones 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!

View our latest analysis for Stella-Jones

Stella-Jones is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Stella-Jones

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. From looking at our data, insiders own CA$6.6m worth of Stella-Jones stock, about 0.1% of the company. We prefer to see high levels of insider ownership.

So What Do The Stella-Jones Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Stella-Jones shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Stella-Jones insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stella-Jones. When we did our research, we found 2 warning signs for Stella-Jones (1 doesn't sit too well with us!) that we believe deserve your full attention.

But note: Stella-Jones 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.