In attempting to time a trade, investors often look for signals within the stock market that a particular company may be ripe for the picking. Whether it is a recently announced stock buyback program or the indication that insiders are buying stock in a company, many times strong signals are sent to the market indicating a company's stock price has hit a support level which should bolster capital appreciation in the near to medium term.
Canadian energy company Capital Power Corp. (TSX:CPX) is one company which has increasingly experienced an influx of investment from insiders. In January, a number of transactions took place around the $24 level from a number of the company's executives and C-Suite employees.
Director Katharine Stevenson purchased 2,000 shares during the month, along with Director Jill Gardiner and CEO Brian Vaasjo, who purchased 1,280 and 10,350 shares, respectively at current levels.
Shares of Capital Power have largely traded sideways in recent months as investors digest rising interest rates and decide whether companies like Capital Power fit into a long-term portfolio or remain a short-term play.
Currently up approximately 50% since the beginning of 2016, Capital Power has been a slow and steady performer for investors over the past two years, a trend which is likely to continue moving forward.
As always, a reminder that insider buying is in no way an indication of the direction a stock is expected to move in the near-term, and long-term investors should assess the fundamentals of said company and consult an investment advisor before making any purchases.
Invest wisely, my friends.