Gildan Activewear Inc. (TSE:GIL) shareholders (or potential shareholders) will be happy to see that the Co-Founder, Glenn Chamandy, recently bought a whopping CA$9.8m worth of stock, at a price of CA$49.18. Not only is that a big swing, but it increased their holding size by 17%, which is definitely great to see.
Gildan Activewear Insider Transactions Over The Last Year
Notably, that recent purchase by Glenn Chamandy is the biggest insider purchase of Gildan Activewear shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$50.63. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Gildan Activewear share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 205.97k shares worth CA$10m. But they sold 44.79k shares for CA$3.7m. Overall, Gildan Activewear insiders were net buyers during the last year. 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!
Check out our latest analysis for Gildan Activewear
Gildan Activewear 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 Gildan Activewear
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Gildan Activewear insiders own 1.1% of the company, worth about CA$101m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Gildan Activewear Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Gildan Activewear insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 5 warning signs with Gildan Activewear and understanding them should be part of your investment process.
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.
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