Goodfellow Insiders Placed Bullish Bets Worth CA$23.9m
Multiple insiders secured a larger position in Goodfellow Inc. (TSE:GDL) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company’s prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Goodfellow
The Last 12 Months Of Insider Transactions At Goodfellow
In the last twelve months, the biggest single purchase by an insider was when Director G. Goodfellow bought CA$24m worth of shares at a price of CA$14.21 per share. That means that even when the share price was higher than CA$14.07 (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. To us, it’s very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Goodfellow insiders may have bought shares in the last year, but they didn’t sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Goodfellow is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Goodfellow Have Bought Stock Recently
Over the last quarter, Goodfellow insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$24m for shares in the company — and none sold. This could be interpreted as suggesting a positive outlook.
Does Goodfellow Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Goodfellow insiders own 21% of the company, worth about CA$25m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Goodfellow Insiders?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Goodfellow shares, given these transactions (along with notable insider ownership of the company). While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You’d be interested to know, that we found 2 warning signs for Goodfellow and we suggest you have a look.
Of course Goodfellow 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.