South Bow Senior VP & COO Acquires 32% More Stock
Potential South Bow Corporation (TSE:SOBO) shareholders may wish to note that the Senior VP & COO, Richard Prior, recently bought CA$627k worth of stock, paying CA$48.26 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 32%.
South Bow Insider Transactions Over The Last Year
The President, Bevin Wirzba, made the biggest insider sale in the last 12 months. That single transaction was for CA$3.2m worth of shares at a price of CA$45.31 each. That means that even when the share price was below the current price of CA$47.65, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 37% of Bevin Wirzba's holding.
Happily, we note that in the last year insiders paid CA$4.6m for 98.39k shares. On the other hand they divested 70.14k shares, for CA$3.2m. In total, South Bow insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for South Bow
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of South Bow
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. South Bow insiders own about CA$20m worth of shares. That equates to 0.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About South Bow Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in South Bow 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. Be aware that South Bow is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...
Of course South Bow 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.