One of the potential beneficiaries of a post-pandemic recovery, shares of CI Financial Corp. (TSX:CIX) have continued to lag the overall market, and are still trading roughly 30% below pre-pandemic levels. The company’s stock price is getting so cheap, it appears insiders have gained an appetite for these shares at this level.
In January, three members of CI’s board of directors bought heavily into this stock, buying a combined 325,000 shares of the company at prices around the $16.50 level. The stock has since risen to the $17.50 level, perhaps partly due to this insider buying, and partly due to a recovery story in the financials sector which has buoyed these stocks of late.
This is a stock with a dividend yield in excess of 4%, and a management team that appears to believe greatly in the potential of this financials play. I think investors looking for bullish insider transaction trends ought to take a deeper look at this company. I do think financials are undervalued right now, and this is a company with an aggressive management team that is putting its money where its mouth is, all positives for this stock in the near-term.
As always, please remember to consult with a certified financial advisor into your own homework before making investing decisions. Insider buying and selling activity is not necessarily indicative of the future performance of a given company’s stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance.
Analyzing insider transactions in a given stock is one tool of many to gain pertinent information to assist in investment decision making.
Invest wisely, my friends.