Insider Buyers At Western Forest Products Recover Some Losses, But Still Down CA$113k

Insiders who bought CA$403.3k worth of Western Forest Products Inc. (TSE:WEF) stock in the last year have seen some of their losses recouped as the stock gained 11% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$113k.

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

Check out our latest analysis for Western Forest Products

The Last 12 Months Of Insider Transactions At Western Forest Products

The President J. Hofer made the biggest insider purchase in the last 12 months. That single transaction was for CA$200k worth of shares at a price of CA$0.67 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.46). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Western Forest Products insiders bought shares during the last year, they didn't sell. 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!

Western Forest Products 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.

Western Forest Products Insiders Bought Stock Recently

There was some insider buying at Western Forest Products over the last quarter. Insiders shelled out CA$51k for shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data isn't picking up on much insider ownership at Western Forest Products, though insiders do hold about CA$1.1m worth of shares. We might be missing something but that seems like very low insider ownership.

So What Do The Western Forest Products Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Western Forest Products 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. You'd be interested to know, that we found 1 warning sign for Western Forest Products and we suggest you have a look.

Of course Western Forest Products may not be the best stock to buy. So you may wish to see this free collection of high quality 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.