Two CN trains pass a rail intersection in North Vancouver, on May 10, 2012.Jonathan Hayward/The Canadian Press
Over the past week, there is one sector that has seen active insider buying action, and the sector under accumulation may surprise you.
It is the worst performing sector in the S&P/TSX composite index – the energy sector. Many insiders may be using stock price weakness as a buying opportunity.
Listed below are eight companies that have experienced recent insider buying and selling activities in the public market through their direct and indirect ownerships.
Keep in mind, when looking at transaction activities by insiders, purchasing activity may reflect perceived value in a security. Conversely, if insiders are selling shares, that may or may not be related to a stock's perceived valuation; perhaps an insider needs to raise money for personal reasons.
Furthermore, an insider's total holdings should be considered because a sale may, in context, be insignificant if this person has a large remaining position in the company. I tend to put great weight on insider transaction activities when I see multiple insiders buying or selling a company's shares.
Let's begin with the buyers.
Canadian National Railway Company (CNR-T)
Board member Donald Carty purchased 4,422 shares on Jan. 26.
Inter Pipeline Ltd. (IPL-T)
Duane Keinick, who sits on the board of directors, bought a relatively small number of shares (530) on Jan. 27. However, just prior to that, on Jan. 23, chief financial officer Brent Heagy bought 5,500 shares at a price of $28.562 per share.
Parex Resources Inc. (PXT-T)
Board member Glenn McNamara purchased 4,780 shares on Jan. 30 at a price of $15.79 per share.
Raging River Exploration Inc. (RRX-T)
Board member Kevin Olson bought 10,000 shares at $9.2941 on Jan. 30. Seven days earlier, Neil Roszell, the company's chairman, president and chief executive officer, purchased 100,000 shares at a price of $9 each.
Tourmaline Oil Corp. (TOU-T)
Michael Rose, the chairman, president and chief executive officer, continues to accumulate shares. On Jan. 30, he purchased 10,000 shares at $30.21. In January, he has accumulated 25,000 shares in the public market.
Westshore Terminals Investment Corp. (WTE-T)
On Jan. 26, board member Douglas Souter bought 1,900 shares at a price of $25.80. In Jan. 19, William Stinson, the chairman, president and chief executive officer, added 1,500 shares to his holdings.
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Turning to the sellers, two companies are highlighted below with recent insider selling activity.
Canadian Western Bank (CWB-T)
Diane Davies, the senior vice-president of operations and business transformation, sold 2,500 shares at a price of $30.54 per share on Jan. 26.
Novagold Resources Inc. (NG-T)
Management team member Ron Rimelman serves as the vice-president of environment, health, safety and sustainability. On Jan. 30, he reduced his holdings by 28,648 shares.