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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 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 do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Western Forest Products
Western Forest Products Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President J. Hofer bought CA$200k worth of shares at a price of CA$0.67 per share. That means that an insider was happy to buy shares at above the current price of CA$0.43. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
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. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insiders At Western Forest Products Have Bought Stock Recently
There was some insider buying at Western Forest Products over the last quarter. Insiders bought CA$20k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership Of Western Forest Products
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data isn't picking up on much insider ownership at Western Forest Products, though insiders do hold about CA$1.1m worth of shares. This level of insider ownership is notably low, and not very encouraging.
So What Do The Western Forest Products Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Western Forest Products insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Western Forest Products has 1 warning sign and it would be unwise to ignore this.