President & CEO of Information Services Picks Up 50% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Information Services Corporation (TSE:ISV) President & CEO, Shawn Peters, recently bought CA$130k worth of stock, for CA$26.03 per share. That purchase might not be huge but it did increase their holding by 50%.

View our latest analysis for Information Services

Information Services Insider Transactions Over The Last Year

Notably, that recent purchase by Shawn Peters is the biggest insider purchase of Information Services shares that we've seen in the last year. That means that even when the share price was higher than CA$26.00 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for 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.

While Information Services insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Information Services Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own CA$1.8m worth of Information Services stock, about 0.4% of the company. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Information Services Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Information Services insiders are reasonably well aligned, and optimistic for the future. 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, Information Services has 5 warning signs (and 2 which make us uncomfortable) we think you should know about.

Of course Information Services 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.