Bullish Rogers Communications Insiders Loaded Up On CA$26.6m Of Stock
Insiders at Rogers Communications, including Executive Chairman Edward Rogers, have significantly increased their holdings, purchasing CA$26.6 million worth of stock over the past year. This insider buying suggests confidence in the company's future prospects. Insiders own about CA$303 million worth of shares, aligning management incentives with shareholders. No insider transactions occurred in the last three months, but the overall trend indicates positive sentiment. However, there are three warning signs for the company that warrant attention.
Quite a few insiders have dramatically grown their holdings in Rogers Communications Inc. (TSE:RCI.B) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
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Rogers Communications Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Edward Rogers for CA$26m worth of shares, at about CA$48.34 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$53.88), we still think insider buying is a positive. 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.
Happily, we note that in the last year insiders paid CA$27m for 553.45k shares. On the other hand they divested 220.00 shares, for CA$10k. Overall, Rogers Communications insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Rogers Communications
Rogers Communications is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Rogers Communications
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Rogers Communications insiders own about CA$303m worth of shares (which is 1.0% of the company). 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 Rogers Communications Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Rogers Communications insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Rogers Communications (2 are significant!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.
