Ten stocks with notable insider buying and selling

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When assessing whether or not to accumulate shares of a stock, you want to invest in a security with strong company fundamentals.

In addition, industry conditions should be considered. Investing in a company operating in an environment with positive industry fundamentals may be a tailwind for the company, potentially fuelling positive earnings momentum and raising a stock's valuation.

For instance, if the price of oil is rising, the positive commodity price environment may help strengthen a company's financial position. What is also positive to see is insider buying activity, and investors can view this information by visiting the website sedi.ca.

Management clearly has the best information about company and industry conditions, and is in the best position to assess the health and outlook of the company's financials.

So, if insiders have the confidence to purchase shares, that may be an indicator of value in the share price. Conversely, if insiders are selling shares that may or may not be an indicator of a stock being fully valued. For example, perhaps the insider needs to raise money for personal reasons and as a result, selling activity is unrelated to a stock's valuation. As a result, I tend to put great weight on insider transaction activities when I see multiple insiders buying or selling a company's shares. Furthermore, an insider's total holdings should be considered as a sale may seem insignificant if this person has a large remaining position in the company.

That being said, discussed below are 10 companies that have experienced notable insider buying and selling activity over the past month, starting with the buyers.

Westshore Terminals Investment Corp.

James Pattison, a large security holder, has been accumulating shares, but last month, he stepped up his buying activity despite the run-up in the share price. Public filings as of Nov. 30 indicate Mr. Pattison has purchased 1,491,500 shares month-to-date. This is up from his purchase of 304,100 shares in October, and his accumulation of 304,000 shares in September.

HudBay Minerals Inc.

Investment manager GMT Capital Corp. has been actively accumulating shares of HudBay Minerals, purchasing over two million shares over the past month.

Fortis Inc.

Two insiders took advantage of the recent price weakness for this utility player. Joseph Welch, purchased 60,000 shares on Nov. 11, and Jon Jipping bought 57,081 shares just two days prior on Nov. 9.

Jean Coutu Group Inc.

Chairman Jean Coutu bought 99,650 shares at an average price of $20.04 a share.

Linamar Corp.

Chief executive officer Linda Hasenfratz accumulated 50,000 shares in the high $48 range on Nov. 15, near the low of the recent decline. The share price has since bounced back above the $51 mark.

On the flip side, companies with recent insider selling activities include:

Great Canadian Gaming Corp.

Board member Neil Baker sold eight million shares, through direct and indirect ownership, on Nov. 17 at an average price of $23.25 a share.

Concordia International Corp.

Chairman Jordan Kupinsky sold 530,000 shares on Nov. 8, and sold an additional 50,000 shares the following week, on Nov. 15.

Kinaxis Inc.

Chief financial officer Richard Monkman sold 25,000 shares on Nov. 10. CEO John Sicard sold 10,000 shares at a price of just over $67 a share. The chairman Douglas Colbeth sold 37,500 shares on Nov. 8, and trimmed his holdings by 12,500 shares the following day.

Magna International Inc.

CEO Donald Walker sold 125,000 shares on Nov. 17.

Sleep Country Canada Holdings Inc.

Christine Magee, the co-founder and co-chair, sold 20,000 shares on Nov. 23 at a price a share in the upper $28 range. Robert Masson, the company's chief financial officer, sold 10,000 shares on Nov. 4, and 7,500 shares last week, on Nov. 24. Also selling was Stewart Schaefer, the president of Dormez-vous, which operates in Quebec, who pared his holdings by 40,000 shares on Nov. 3, with an additional sale of 10,000 shares on Nov. 7.

As always, I strongly encourage readers to consult a financial adviser, consider potential tax implications, and to do their own proper due diligence before taking any investment action.

The author does not personally own the securities mentioned in this story.