Canada Goose Holdings Inc.’s (TSE:GOOS) recent C$108 million market cap drop means a C$80,000 loss for insiders who bought this year


The recent decline of 4.1% Canada Goose Holdings Inc. (TSE:GOOS) The shares could be a blow to insiders who bought C$127,000 worth of shares at an average purchase price of C$65.48 over the past 12 months. Insiders buy in the hope that their investments will increase in value over time. However, due to recent losses, their initial investment is only worth CA$46,000, which isn’t a lot.

While we don’t believe shareholders should simply follow insider trades, logic dictates that you pay attention to whether insiders are buying or selling shares.

However, if you prefer to see where opportunities and risks are within the GOOS industryyou can consult our analysis on the CA Luxury industry.

Canada Goose Holdings insider trading in the past year

Over the past year, we can see that the largest insider buy was made by insider Paul Cadman for C$127,000 of stock, at around C$65.48 per share. This means that even when the stock price was above C$23.89 (the recent price), an insider wanted to buy stock. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. For us, it is very important to consider the price that insiders pay for the shares. Generally speaking, it catches our attention when an insider has bought stocks at prices higher than the current price, because it suggests that they thought the stock was worth buying, even at a higher price. Paul Cadman was the only individual insider to buy shares in the last twelve months.

The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all individual trades including stock price, individual and date!

TSX: GOOS Insider Trading Volume August 30, 2022

There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).

Insider ownership

For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. It’s great to see that Canada Goose Holdings insiders own 19% of the company, which is worth approximately C$485 million. This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.

So what do Canada Goose Holdings insider trading indicate?

It doesn’t mean much that no insider traded shares of Canada Goose Holdings in the last quarter. However, our analysis of transactions over the past year is encouraging. It would be great to see more insider buying, but overall it looks like Canada Goose Holdings insiders are reasonably well-aligned (holding a significant portion of the company’s stock) and optimistic about the future. In addition to knowing what insider trading is going on, it pays to identify the risks that Canada Goose Holdings faces. To help you, we found 1 warning sign which you should browse to get a better picture of Canada Goose Holdings.

Sure Canada Goose Holdings may not be the best stock to buy. So you might want to see this free set of high quality companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Valuation is complex, but we help make it simple.

Find out if Canada Goose Holdings is potentially overvalued or undervalued by viewing our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis


Comments are closed.