A pair of directors bought $484,050 worth of BCE Inc. shares in the public market on Nov. 10, a positive sign for the stock.Christopher Katsarov/The Canadian Press
While it has been a good year for Canadian stocks, with the INK Canadian Insider Total Return Index up 38.1 per cent year-to-date (all returns are as of Dec. 11), there are inevitably some stocks that trail the pack.
Today, we look at some laggards that may be coming under pressure as we head into year-end because of tax-loss selling. Specifically, we are looking at stocks showing up in the top 30 per cent of our INK Edge screens but are down year-to-date. The INK Edge quantitatively ranks a stock based on valuations, insider commitment and price momentum.
Tourmaline Oil Corp. TOU-T set a 52-week high of $70.83 on Feb. 21 but fell sharply at the beginning of April and remains down 5.1 per cent year-to-date. One factor that may have played a part in its underperformance is the 18.8 million shares issued as part of its acquisition of Crew Energy on Oct. 1, 2024.
Looking ahead, Tourmaline is part of the Rockies LNG Partners group that is participating in the Ksi Lisims LNG project, a proposed LNG export facility with a planned capacity of 12 million tonnes per year that has been fast-tracked by the Carney government.
Based on INK data, Tourmaline has a trailing 12-month price-to-earnings ratio of 15.9, which compares favourably to a TSX average of 18.7. Insiders, led by president & CEO Mike Rose, have bought $4.48-million worth of shares over the past 90 days.
North American trucking firm TFI International Inc. TFII stock fell sharply after the initial announcement of U.S. tariffs on Canadian goods and it is down 27.2 per cent year-to-date. That said, the stock is enjoying some short-term momentum, up 15.1 per cent over the past month.
CEO Mike Rose and others continue to buy as Tourmaline Oil rallies
Notably, when it reported third-quarter results, CEO Alain Bedard said, “Year-to-date, we have generated more than US$570-million of free cash flow, exceeding the prior year’s nine-month figure.”
Meanwhile, insiders have been net acquirers of $655,029 worth of shares over the past 90 days through a combination of public market purchases and option exercises. Generally, we view improving cash flow and insider accumulation as a positive combination.
Telecommunications giant BCE Inc. BCE-T has been facing a competitive environment pressured by low Canadian economic and population growth. The stock has tried to break through the $36 level a few times over the course of the year, but so far that ceiling has held and the stock is down 3.2 per cent year-to-date.
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When it reported third-quarter results, operating revenue (up 1.5 per cent), adjusted net earnings (up 6.5 per cent), adjusted EBITDA (up 1.5 per cent) and free cash flow (up 20.6 per cent) were all improved year-over-year. It also reaffirmed full-year 2025 guidance for revenue and adjusted EBITDA growth of 0 per cent to 2 per cent. Notably, it still sees free cash flow growth of 6 per cent to 11 per cent.
Meanwhile, a pair of directors spent $484,050 buying shares in the public market on Nov. 10. This positive combination of cash flow growth and insider buying coincides with a share price that sports a trailing 12-month P/E of 4.9, which compares favourably with the TSX average.
Given that a lot of pessimism has likely already been factored into the share price, perhaps BCE shareholders can ring in the new year with a bit of optimism.
Ted Dixon is the CEO of INK Research, which provides insider news and knowledge to investors.