The big Canadian banks led share buybacks in the third quarter, with Royal Bank of Canada (RY-T) repurchasing $2.3-billion worth of shares. Bank of Montreal (BMO-T) followed with $1.8-billion in buybacks, while Canadian Natural Resources Limited (CNQ-T) spent $1.6-billion. Notably, none of these top three issuers saw insider buying during the quarter, which analysts view as a potential signal of undervaluation.
Among stocks with both buybacks and insider buying, Zodiac Gold stood out. National Bank of Canada (NA-T) spent $711-million on buybacks in Q3, with a director purchasing $44,543 worth of shares. Chemtrade Logistics Income Fund (CHE-UN-T) continued its buyback program, spending $15.7-million, but lacked insider buying. Air Canada (AC-T) saw a 52-week high of $31.45 in August but has since declined 1.5 per cent, with some insider selling reported.
Torex Gold Resources Inc. (TXG-T) was the standout performer, with its share price surging 40.9 per cent since July 20. The company spent $117.4-million on buybacks in Q3, accompanied by small insider purchases. Other notable stocks with the buyback and insider buying combination include Nutrien Ltd. (NTR-T), Trican Well Service Ltd. (TCW-T), and Rockpoint Gas Storage Inc. (RGSI-T), which saw insiders buying shares amid a 15 per cent drop in its stock price.
Rockpoint's CEO Toby McKenna and CFO Jon Syrnyk invested $487,690 and $75,107 respectively in the public market, while the company spent $24.3-million on buybacks. Analysts suggest that insider participation supports the case for undervaluation, though performance varies significantly across individual stocks.