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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in BMTC Group Inc. (TSE:GBT).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
See our latest analysis for BMTC Group
BMTC Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman Yves Groseillers for CA$307k worth of shares, at about CA$15.26 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$11.70). 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Yves Groseillers was the only individual insider to buy shares in the last twelve months.
Yves Groseillers bought a total of 44693 shares over the year at an average price of CA$14.94. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Insider Ownership of BMTC Group
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. BMTC Group insiders own 63% of the company, currently worth about CA$253m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At BMTC Group Tell Us?
It doesn’t really mean much that no insider has traded BMTC Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, BMTC Group insiders feel good about the company’s future. Along with insider transactions, I recommend checking if BMTC Group is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: BMTC Group 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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.