Potential Linamar Corporation (TSE:LNR) shareholders may wish to note that insider Csaba Havasi recently bought CA$229k worth of stock, paying CA$30.47 for each share. Although the purchase only increased their holding by 4.9%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Linamar
CTO, Executive VP of Sales & Marketing and Non-Independent Director Mark Stoddart made the biggest insider purchase in the last 12 months. That single transaction was for CA$6.1m worth of shares at a price of CA$45.38 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$28.10). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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. Notably Mark Stoddart was also the biggest seller.
Over the last year, we can see that insiders have bought 201.99k shares worth CA$9.1m. But insiders sold 20100 shares worth CA$904k. In total, Linamar insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Linamar 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.
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. Linamar insiders own about CA$585m worth of shares (which is 32% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Linamar Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Linamar insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Linamar. For example - Linamar has 2 warning signs we think you should be aware of.
Of course Linamar 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, but not derivative transactions.
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