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Even if it's not a huge purchase, we think it was good to see that Richard Lord, the CEO, President & Executive Director of Richelieu Hardware Ltd. (TSE:RCH) recently shelled out CA$111k to buy stock, at CA$36.84 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for Richelieu Hardware
The Last 12 Months Of Insider Transactions At Richelieu Hardware
Over the last year, we can see that the biggest insider sale was by the insider, Guy Grenier, for CA$150k worth of shares, at about CA$49.89 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$36.47. So it may not tell us anything about how insiders feel about the current share price. Guy Grenier was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 5.55k shares for CA$205k. On the other hand they divested 3.00k shares, for CA$150k. Overall, Richelieu Hardware insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Richelieu Hardware
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. It's great to see that Richelieu Hardware insiders own 7.8% of the company, worth about CA$160m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Richelieu Hardware Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Richelieu Hardware. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Richelieu Hardware.