Insider Spends CA$302k Buying More Shares In Algoma Central

Potential Algoma Central Corporation (TSE:ALC) shareholders may wish to note that the Independent Chairman of the Board, Duncan Newton Jackman, recently bought CA$302k worth of stock, paying CA$16.51 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 61%.

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Algoma Central Insider Transactions Over The Last Year

In fact, the recent purchase by Duncan Newton Jackman was the biggest purchase of Algoma Central shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is CA$17.40. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid CA$336k for 20.30k shares. But insiders sold 2.00k shares worth CA$30k. In the last twelve months there was more buying than selling by Algoma Central insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Algoma Central

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.

Insider Ownership Of Algoma Central

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Algoma Central insiders have about 0.3% of the stock, worth approximately CA$2.2m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

So What Do The Algoma Central Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Algoma Central stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Algoma Central. While conducting our analysis, we found that Algoma Central has 2 warning signs and it would be unwise to ignore these.

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