Bruce Robertson Is The Lead Independent Director of Morguard Corporation (TSE:MRC) And They Just Picked Up 11% More Shares

By
Simply Wall St
Published
September 03, 2021
TSX:MRC
Source: Shutterstock

Investors who take an interest in Morguard Corporation (TSE:MRC) should definitely note that the Lead Independent Director, Bruce Robertson, recently paid CA$133 per share to buy CA$266k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 11%.

View our latest analysis for Morguard

The Last 12 Months Of Insider Transactions At Morguard

In fact, the recent purchase by Lead Independent Director Bruce Robertson was not their only acquisition of Morguard shares this year. They previously made an even bigger purchase of CA$600k worth of shares at a price of CA$120 per share. That implies that an insider found the current price of CA$132 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 14.10k shares for CA$1.7m. But they sold 1.40k shares for CA$165k. Overall, Morguard insiders were net buyers during the last year. 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!

insider-trading-volume
TSX:MRC Insider Trading Volume September 4th 2021

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).

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. We usually like to see fairly high levels of insider ownership. Morguard insiders own 61% of the company, currently worth about CA$899m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Morguard Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Morguard. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Morguard that deserve your attention before buying any shares.

Of course Morguard 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, but not derivative transactions.

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