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Quite a few insiders have dramatically grown their holdings in Westshore Terminals Investment Corporation (TSE:WTE) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Westshore Terminals Investment
The Last 12 Months Of Insider Transactions At Westshore Terminals Investment
In the last twelve months, the biggest single purchase by an insider was when insider James Pattison bought CA$3.6m worth of shares at a price of CA$27.44 per share. That means that an insider was happy to buy shares at above the current price of CA$23.24. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
While Westshore Terminals Investment insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Westshore Terminals Investment Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Westshore Terminals Investment insiders own 48% of the company, worth about CA$691m. 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 Westshore Terminals Investment Tell Us?
The fact that there have been no Westshore Terminals Investment insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Westshore Terminals Investment insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Westshore Terminals Investment has 2 warning signs (and 1 which is concerning) we think you should know about.