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Morguard Corporation (TSE:MRC) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Kuldip Sahi, recently bought a whopping CA$3.2m worth of stock, at a price of CA$121. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.4%.
View our latest analysis for Morguard
Morguard Insider Transactions Over The Last Year
In fact, the recent purchase by Kuldip Sahi was the biggest purchase of Morguard shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$122 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Morguard share holders is that an insider was buying at near the current price. Kuldip Sahi was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Morguard insiders own 63% of the company, currently worth about CA$827m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Morguard 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Morguard. Nice! 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. Every company has risks, and we've spotted 2 warning signs for Morguard (of which 1 shouldn't be ignored!) you should know about.