From what we can see, insiders were net buyers in Sleep Country Canada Holdings Inc.'s (TSE:ZZZ ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Sleep Country Canada Holdings
The Last 12 Months Of Insider Transactions At Sleep Country Canada Holdings
Over the last year, we can see that the biggest insider purchase was by Chief Sales Officer David Howcroft for CA$90k worth of shares, at about CA$26.75 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$23.07). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for 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. David Howcroft was the only individual insider to buy during the last year.
David Howcroft purchased 5.68k shares over the year. The average price per share was CA$24.61. 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!
Sleep Country Canada Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.7% of Sleep Country Canada Holdings shares, worth about CA$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Sleep Country Canada Holdings Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Sleep Country Canada Holdings and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Sleep Country Canada Holdings that deserve your attention before buying any shares.