Insider Buying: Acadian Timber Chairman of the Board Bought CA$1.5m Of Shares
Acadian Timber Corp. (TSE:ADN) shareholders (or potential shareholders) will be happy to see that the Chairman of the Board, Malcolm Cockwell, recently bought a whopping CA$1.5m worth of stock, at a price of CA$17.25. While that only increased their holding size by 0.9%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Acadian Timber
In fact, the recent purchase by Malcolm Cockwell was the biggest purchase of Acadian Timber shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$17.91 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Acadian Timber share holders is that insiders were buying at near the current price.
In the last twelve months Acadian Timber insiders were buying shares, but not selling. 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!
See our latest analysis for Acadian Timber
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Acadian Timber insiders own 52% of the company, worth about CA$174m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Acadian Timber Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Acadian Timber insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. When we did our research, we found 3 warning signs for Acadian Timber (1 is a bit unpleasant!) that we believe deserve your full attention.
Of course Acadian Timber 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.
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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.