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Whilst it may not be a huge deal, we thought it was good to see that the CAE Inc. (TSE:CAE) Independent Director, Mary Lou Maher, recently bought CA$53k worth of stock, for CA$26.38 per share. That purchase might not be huge but it did increase their holding by 44%.
See our latest analysis for CAE
The Last 12 Months Of Insider Transactions At CAE
In the last twelve months, the biggest single purchase by an insider was when President Marc Parent bought CA$1.1m worth of shares at a price of CA$31.22 per share. That means that even when the share price was higher than CA$25.97 (the recent price), an insider wanted to purchase shares. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While CAE 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 growing companies that insiders are buying.
Insider Ownership Of CAE
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. From our data, it seems that CAE insiders own 0.2% of the company, worth about CA$13m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At CAE Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of CAE we think they are probably pretty confident of a bright 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 instance, we've identified 2 warning signs for CAE (1 is potentially serious) you should be aware of.
Of course CAE may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.