In This Article:
Investors who take an interest in North American Construction Group Ltd. (TSE:NOA) should definitely note that the Chairman of the Board, Martin Ferron, recently paid CA$13.65 per share to buy CA$300k worth of the stock. Although the purchase only increased their holding by 1.0%, it is still a solid purchase in our view.
See our latest analysis for North American Construction Group
North American Construction Group Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman of the Board Martin Ferron was not the only time they traded North American Construction Group shares this year. They previously made a sale of -CA$340k worth of shares at a price of CA$21.04 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$14.62. So it is hard to draw any strong conclusion from it.
Martin Ferron purchased 72.00k shares over the year. The average price per share was CA$16.16. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by 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. North American Construction Group insiders own about CA$41m worth of shares. That equates to 9.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About North American Construction Group Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest North American Construction Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing North American Construction Group. Case in point: We've spotted 4 warning signs for North American Construction Group you should be aware of, and 1 of these shouldn't be ignored.