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The S&P/TSX composite index finished the year with a solid price return of 1.36 per cent in December.
So what actions were company insiders taking as the year 2016 came to a close? Let's have a look back at the final trading weeks of 2016.
When looking at transaction activities by insiders, keep in mind, 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.
Insider transaction details are freely available to everyone by visiting the website www.sedi.ca.
Discussed below are 13 companies that have experienced notable insider buying and selling activities in the public market, through their direct and indirect ownerships, starting with the buy side.
ARC Resources Ltd. (ARX-T)
On December 20, Bevin Wirzba, senior vice-president of business development and capital markets, purchased 4,300 shares at a price of $23.18 per share.
Emera Inc. (EMA-T)
COO Scott Balfour acquired 3,000 shares on December 19 and, the following day, accumulated another 2,100 shares.
Gran Tierra Energy Inc. (GTE-T)
On December 20, Ronald Royal, who sits on the board of directors, purchased 115,000 shares, while fellow board member David Smith accumulated 65,000 shares. The next day, David Hardy, vice-president of legal and general counsel, purchased 15,000 shares and an additional 9,000 shares on December 23. Ed Caldwell, the company's vice-president of health, safety and environment and corporate social responsibility, bought 15,000 shares on December 21.
Husky Energy Inc. (HSE-T)
Former president and chief executive officer Asim Ghosh purchased 30,000 shares at a price of approximately $16.59 per share on December 22.
Hydro One Ltd. (H-T)
James Hinds, who sits on the board of directors, purchased 5,000 shares on December 23. That same day, chairman David Denison purchased 1,000 shares.
Pason Systems Inc. (PSI-T)
Timur Kuru, the president and general manager in charge of building business in the U.S., purchased 29,000 shares on December 29.
Tricon Capital Group Inc. (TCN-T)
On December 12, board member Ira Gluskin accumulated 23,835 shares at a price of $9.78 per share. On December 15, executive chairman David Berman purchased 10,000 shares at a price of $9.50 per share. Finally, on December 23, president and CEO Gary Berman acquired 3,600 shares.
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Turning to the sell side, there are six companies listed below with recent insider transaction activities.
Bonavista Energy Corp. (BNP-T)
Executive chairman Keith MacPhail trimmed his portfolio by 11,500 shares at a price of $4.79 per share on December 22. He subsequently sold an additional 10,000 shares the following trading day at a price of $4.68 per share.
Canadian Imperial Bank of Commerce (CM-T)
Board member Ronald Tysoe sold 5,000 shares on December 22.
Canadian Pacific Railway Ltd. (CP-T)
On December 23, board member Rebecca MacDonald sold 3,900 shares at a price of $194.43 per share.
DHX Media Ltd. (DHX.B-T)
Executive chairman Michael Donovan made a series of sales at the end of the year. On December 19, he trimmed his position by 5,200 shares. The following day, he sold 70,000 shares. On December 21, he reduced his holdings by 10,900 shares, and the next day, sold an additional 13,900 shares. He maintains a large position in the company.
Dollarama Inc. (DOL-T)
Geoffrey Robillard, the senior vice-president of the import division, sold 21,250 shares at a price of approximately $99.83 per share on December 12. John Assaly, vice-president of global procurement, sold 17,220 shares at a price of $99.86 per share the following week on December 19.
Morneau Shepell Inc. (MSI-T)
Julien Ponce, executive vice-president of eastern Canada, sold 10,000 shares at a price of approximately $19.11 per share on December 29.
Jennifer Dowty