Bullish Rogers Communications Insiders Loaded Up On CA$3.10m Of Stock

Quite a few insiders have dramatically grown their holdings in Rogers Communications Inc. (TSE:RCI.B) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Rogers Communications

Rogers Communications Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Edward Rogers for CA$1.9m worth of shares, at about CA$54.26 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$40.11). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 61.57k shares worth CA$3.1m. But they sold 385.00 shares for CA$20k. Overall, Rogers Communications insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Rogers Communications is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Rogers Communications Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Rogers Communications. In total, insiders bought CA$936k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Rogers Communications Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Rogers Communications insiders own 0.9% of the company, worth about CA$206m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Rogers Communications Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Rogers Communications insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rogers Communications. Case in point: We've spotted 1 warning sign for Rogers Communications you should be aware of.

But note: Rogers Communications 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 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.