This Insider Has Just Sold Shares In Linamar
We wouldn't blame Linamar Corporation (TSE:LNR) shareholders if they were a little worried about the fact that Mark Stoddart, the CTO, Executive VP of Sales & Marketing and Non-Independent Director recently netted about CA$2.0m selling shares at an average price of CA$106. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.6%.
The Last 12 Months Of Insider Transactions At Linamar
Over the last year, we can see that the biggest insider purchase was by Executive Chairman of the Board Linda Hasenfratz for CA$4.0m worth of shares, at about CA$80.08 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$96.89), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
All up, insiders sold more shares in Linamar than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Linamar
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Linamar insiders own 36% of the company, currently worth about CA$2.1b 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?
An insider hasn't bought Linamar stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Linamar is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Linamar you should be aware of.
But note: Linamar may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.