From what we can see, insiders were net buyers in North American Construction Group Ltd.'s (TSE:NOA ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At North American Construction Group
Over the last year, we can see that the biggest insider sale was by the Chairman of the Board, Martin Ferron, for CA$340k worth of shares, at about CA$21.04 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$14.01. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Martin Ferron. Notably Martin Ferron was also the biggest buyer, having purchased CA$793k worth of shares.
Martin Ferron bought a total of 45.00k shares over the year at an average price of CA$17.62. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
North American Construction Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does North American Construction Group Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that North American Construction Group insiders own 12% of the company, worth about CA$46m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At North American Construction Group Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of North American Construction Group we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing North American Construction Group. At Simply Wall St, we've found that North American Construction Group has 4 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.
But note: North American Construction Group 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, but not derivative transactions.
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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.