Director of AutoCanada Picks Up 62% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the AutoCanada Inc. (TSE:ACQ) Director, Christopher Harris, recently bought CA$72k worth of stock, for CA$14.48 per share. Even though that isn't a massive buy, it did increase their holding by 62%, which is arguably a good sign.

Check out our latest analysis for AutoCanada

AutoCanada Insider Transactions Over The Last Year

In fact, the recent purchase by Christopher Harris was the biggest purchase of AutoCanada shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$14.65 per share to be enticing. 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. 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. Happily, the AutoCanada insider decided to buy shares at close to current prices. Christopher Harris was the only individual insider to buy during the last year.

Christopher Harris bought 8.00k shares over the last 12 months at an average price of CA$16.41. 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!

AutoCanada is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does AutoCanada Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From what we can see in our data, insiders own only about CA$1.2m worth of AutoCanada shares. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At AutoCanada Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. 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 AutoCanada insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for AutoCanada you should be aware of.

Of course AutoCanada 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.