TSE:TD), you may well want to know whether insiders have been buying or selling.” data-reactid=”28″>It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell The Toronto-Dominion Bank (TSE:TD), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise’.
Check out our latest analysis for Toronto-Dominion Bank ” data-reactid=”36″> Check out our latest analysis for Toronto-Dominion Bank
Toronto-Dominion Bank Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Nadir Mohamed bought CA$252k worth of shares at a price of CA$61.45 per share. That means that an insider was happy to buy shares at around the current price of CA$62.53. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. Happily, the Toronto-Dominion Bank insiders decided to buy shares at close to current prices.
In the last twelve months Toronto-Dominion Bank insiders were buying shares, but not selling. 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!
list of growing companies with recent insider purchasing, could be just the ticket.” data-reactid=”52″>Toronto-Dominion Bank is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Toronto-Dominion Bank 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Toronto-Dominion Bank insiders own 0.1% of the company, currently worth about CA$133m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Toronto-Dominion Bank Insiders?
report showing analyst forecasts for its future.” data-reactid=”56″>It doesn’t really mean much that no insider has traded Toronto-Dominion Bank shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Toronto-Dominion Bank insiders feel good about the company’s future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
list of interesting companies with high ROE and low debt.” data-reactid=”61″>But note: Toronto-Dominion Bank 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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”63″>This article by Simply Wall St is general in nature. 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.