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Those following along with Linamar Corporation (TSE:LNR) will no doubt be intrigued by the recent purchase of shares by Linda Hasenfratz, Executive Chairman of the Board of the company, who spent a stonking CA$3.0m on stock at an average price of CA$60.01. While that only increased their holding size by 0.2%, it is still a big swing by our standards.
View our latest analysis for Linamar
The Last 12 Months Of Insider Transactions At Linamar
Notably, that recent purchase by Linda Hasenfratz is the biggest insider purchase of Linamar shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$56.57). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Linda Hasenfratz was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Linamar is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. Linamar insiders own 35% of the company, currently worth about CA$1.3b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Linamar Tell Us?
The recent insider purchase is 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 Linamar. That's what I like to see! Of course, the future is what matters most. So if you are interested in Linamar, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.