When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Western Forest Products Inc.'s (TSE:WEF) instance, it's good news for shareholders.

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

View our latest analysis for Western Forest Products

Western Forest Products Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director John Williamson for CA$111k worth of shares, at about CA$1.11 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.88). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Western Forest Products insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Are Western Forest Products Insiders Buying Or Selling?

We've only seen a tiny insider purchase valued at CA$1.7k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own CA$1.8m worth of Western Forest Products stock, about 0.7% of the company. We prefer to see high levels of insider ownership.

So What Do The Western Forest Products Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Western Forest Products stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Western Forest Products. At Simply Wall St, we found 1 warning sign for Western Forest Products that deserve your attention before buying any shares.

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.