Insider Stock Buying Reaches CA$2.02m On Rogers Communications

Over the last year, a good number of insiders have significantly increased their holdings in Rogers Communications Inc. (TSE:RCI.B). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Rogers Communications

The Last 12 Months Of Insider Transactions At Rogers Communications

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. That means that an insider was happy to buy shares at above the current price of CA$54.10. 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 37.19k shares for CA$2.0m. But insiders sold 2.08k shares worth CA$120k. In the last twelve months there was more buying than selling by Rogers Communications insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Are Rogers Communications Insiders Buying Or Selling?

There was some insider buying at Rogers Communications over the last quarter. insider Diane Kazarian bought CA$34k worth in that time. However, Chief Technology & Information Officer Ronald McKenzie netted CA$20k for sales. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Does Rogers Communications Boast High 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. 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$272m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Rogers Communications Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Rogers Communications insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Rogers Communications (1 shouldn't be ignored!) and we strongly recommend you look at these before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.