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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in AutoCanada Inc.'s (TSE:ACQ) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for AutoCanada
The Last 12 Months Of Insider Transactions At AutoCanada
The Director Christopher Harris made the biggest insider purchase in the last 12 months. That single transaction was for CA$104k worth of shares at a price of CA$13.80 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$19.04. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While AutoCanada insiders bought shares during the last year, they didn't sell. 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.
Insider Ownership Of AutoCanada
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own CA$2.0m worth of AutoCanada stock, about 0.4% of the company. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At AutoCanada Tell Us?
The fact that there have been no AutoCanada insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more AutoCanada stock. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of AutoCanada.
Of course AutoCanada may not be the best stock to buy. So you may wish to see this free collection of high quality companies.