Yahoo Finance Bullish Primo Water Corporation (TSE:PRMW) insiders filled their treasuries with US$2.0m worth of stock over last year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Primo Water Corporation (TSE:PRMW), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Primo Water
The Last 12 Months Of Insider Transactions At Primo Water
Over the last year, we can see that the biggest insider purchase was by President Thomas Harrington for CA$672k worth of shares, at about CA$17.23 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$21.16. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Primo Water insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Primo Water is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.9% of Primo Water shares, worth about CA$98m. 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 Primo Water Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Primo Water and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Primo Water, you should check out this free report on analyst forecasts for the company.
Of course Primo Water 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, 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.
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