Skip to main content

The Globe and Mail

Canadian stocks with strongest insider buying

Comstock/Getty Images/Comstock Images

What are we looking for?

Strong buying of a company's shares by the firm's managers and directors has long been considered a good indication that a stock is ready to roar. After all, if the insiders who know a company best are buying its stock, then they must have confidence in what lies ahead. In keeping with that theory, we sought the Canadian stocks with the strongest insider buying over the past three months.

How we did it

Story continues below advertisement

Bloomberg has developed a screen that searches for companies with heavy buying by insiders. The screen examines companies with market capitalizations of $100-million or more and ranks them on the basis of four criteria:

  • amount of insider buying
  • total amount of management buying
  • insider buying as a percentage of the total trading volume
  • management buying as a percentage of the total trading volume

Bloomberg then calculates a score based on these four criteria. Stocks scoring 100 show the most insider and management buying over the past three months.

What we found

Our list shows the 20 Canadian stocks with the strongest insider buying over the past three months. Each of them has enough potential to entice managers and directors to put down their own cash for shares in the firm.

Investors should be aware, however, that buying stocks on the basis on insider buying is not a foolproof recipe for success. Bloomberg looked at how someone who bought the top 20 stocks in the United States and Canada based on the results of its insider-buying screen would have fared. Since 2002, such an investor would have lagged behind the S&P 500 by a wide margin.

"This 10-year backtest invalidates the theory that heavy insider buying is a determinant of outperformance," Bloomberg says.

Fair enough, but insider buying remains a powerful indicator that a company's best-placed observers are feeling bullish about its future. That suggests that investors who are willing to do additional research may find several gems on today's list.

Story continues below advertisement

Report an error Licensing Options
About the Author

Ian McGugan is a reporter with The Globe and Mail's Report on Business and has been writing about investing, economics and business for more than 20 years. He joined the Globe and Mail in 2010. He has been executive editor of Canadian Business magazine and founding editor of MoneySense magazine. More


The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Globe Newsletters

Get a summary of news of the day

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at