Sylogist Ltd. (CVE:SYZ) Insiders Increased Their Holdings

By
Simply Wall St
Published
December 14, 2018
TSX:SYZ
Source: Shutterstock

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Sylogist Ltd. (CVE:SYZ).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Sylogist

Sylogist Insider Transactions Over The Last Year

Chairman James Wilson made the biggest insider purchase in the last 12 months. That single transaction was for CA$124k worth of shares at a price of CA$13.60 each. That means that an insider was happy to buy shares at above the current price. 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. That purchase may suggest an expectation of positive returns over the long term.

In the last twelve months insiders paid CA$1.1m for 95.88k shares purchased. Overall, Sylogist insiders were net buyers last year. The average buy price was around CA$11.55. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of CA$12.50. You can see the insider transactions over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

TSXV:SYZ Insider Trading December 14th 18
TSXV:SYZ Insider Trading December 14th 18

Sylogist is not the only stock that insiders are buying. For those who like to find winning investments this freelist of growing companies with recent insider purchasing, could be just the ticket.

Sylogist Insiders Bought Stock Recently

It's good to see that Sylogist insiders have made notable investments in the company's shares. Overall, 2 insiders shelled out CA$467k for shares in the company -- and none sold. That shows some optimism about the company's future.

Does Sylogist 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Sylogist insiders own about CA$23m worth of shares (which is 8.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Sylogist Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Sylogist we think they are probably pretty confident of a bright future. Therefore, you should should definitely take a look at this FREEreport showing analyst forecasts for Sylogist.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.

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