Yahoo Finance Insiders purchases in Gildan Activewear Inc. (TSE:GIL) last year yet to pay off, remain down US$2.2k despite recent gains
Some of the losses seen by insiders who purchased US$416k worth of Gildan Activewear Inc. (TSE:GIL) shares over the past year were recovered after the stock increased by 5.9% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$2.2k.
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.
View our latest analysis for Gildan Activewear
Gildan Activewear Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Robin Perkins bought CA$297k worth of shares at a price of CA$39.60 per share. That means that even when the share price was higher than CA$39.39 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid CA$416k for 10.50k shares. But they sold 1.90k shares for CA$95k. In the last twelve months there was more buying than selling by Gildan Activewear insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Gildan Activewear is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Gildan Activewear insiders own 2.1% of the company, worth about CA$154m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Gildan Activewear Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Gildan Activewear insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gildan Activewear. Every company has risks, and we've spotted 2 warning signs for Gildan Activewear (of which 1 is concerning!) you should know about.
But note: Gildan Activewear 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.
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