If you follow Sagicor Financial Company Ltd. (TSE:SFC), you will no doubt be intrigued by the recent purchase of shares by insider Gilbert Palter. He invested a whopping 1.3 million Canadian dollars in stocks with an average price of 5.60 Canadian dollars. The acquisition increased their holdings by 100%, but one wonders if the move was inspired by quiet confidence and underlying optimism.
Check out our latest analysis for Sagicor Financial.
Sagicor Financial Insider Transactions in the Past Year
Notably, the recent purchase by Gilbert Palter is the largest insider purchase of Sagicor Financial shares that we’ve seen in the last year. This means that insiders were willing to buy shares above the current price of CA$5.50. It’s entirely possible that they regret their purchase, but it’s more likely that they’re bullish on the company. For us, it’s very important to consider the price insiders pay for shares. Generally speaking, if insiders purchased shares at a higher price than the current price, they have more positive feelings about the stock. This is because it suggests that insiders view the stock as good value, even at a high price. Note that Gilbert Palter was also the biggest seller.
In the last twelve months, insiders bought 316,590 shares worth CA$1.8m. However, insiders sold 39,000 shares worth CA$225,000. Over the past 12 months, there has been more buying than selling, according to Sagicor Financial insiders. The graph below shows insider transactions (by companies and individuals) over the last year. Click on the chart to see all individual trades, including stock price, individual, and date.
Insider trading volume
Sagicor Financial isn’t the only stock that insiders are buying. For those looking to find small-cap stocks with attractive valuations, this free list of growing companies with recent insider buying, could be just the ticket.
Insider ownership
Many investors like to see how much of a company’s shares are owned by insiders. Typically, the higher the insider ownership, the more likely it is that insiders are incentivized to build the company for the long term. It appears Sagicor Financial insiders own 11% of the company’s shares, worth about CA$85m. This level of insider ownership is good, but far from particularly noticeable. That certainly suggests a reasonable degree of consistency.
So what do Sagicor’s financial insider trading show?
It’s good to see recent purchases. Our analysis of last year’s transactions also gives us confidence. Combined with the high-profile insider ownership, these factors suggest that Sagicor Financial insiders are well aligned and may believe the stock price is too low. In addition to knowing about ongoing insider transactions, it’s useful to identify the risks facing Sagicor Financial. For example, we’ve identified 3 warning signs (1 is concerning) for Sagicor Financial that you should be aware of.
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Of course, you might find great investments if you look elsewhere. Take a peek at this free list of interesting companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
