In This Article:
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in NFI Group Inc.'s (TSE:NFI) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
We've discovered 1 warning sign about NFI Group. View them for free.
NFI Group Insider Transactions Over The Last Year
The Executive VP & CFO Brian Dewsnup made the biggest insider purchase in the last 12 months. That single transaction was for CA$215k worth of shares at a price of CA$15.90 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$11.83). 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. To us, it's very important to consider the price insiders pay for 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.
Over the last year, we can see that insiders have bought 14.45k shares worth CA$230k. But insiders sold 9.35k shares worth CA$169k. Overall, NFI Group insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for NFI Group
NFI Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does NFI Group Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.0% of NFI Group shares, worth about CA$13m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The NFI Group Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think NFI Group insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NFI Group. At Simply Wall St, we found 1 warning sign for NFI Group that deserve your attention before buying any shares.