With markets and the world in general becoming riskier places this spring, it is perhaps not surprising to see some positive insider signals coming from the defence area. The group is less dependent on the economy than other groups in the industrial sector.
Last week, aerospace and defence contractor Héroux released its annual results for the period ended March 31. A few days later, on May 31, the company controller bought 400 shares in the public market at $5.71 and chief financial officer Réal Bélanger exercised 10,000 options at $4.60. It can be bullish sign when insiders exercise options and do not immediately sell all the shares. It is also encouraging to see insiders buy after news, particularly earnings reports.
In addition, the company has been buying back its own shares. During the last month alone, the firm bought 491,900 shares in the public market at prices ranging from $5.36 to $5.80 (not shown on graph).
Ted Dixon is CEO of INK Research which provides insider news and knowledge to investors. Investments profiled are from a recent edition of the Morning INK report which is distributed daily to subscribers and clients of select financial institutions. INK staff may hold shares in profiled securities.
Chart reflects public-market transactions of common shares or unit trusts by company officers and directors.