Saputo Inc. insiders bullish with 40% ownership, recent buying activity

Saputo Inc. has significant insider control with 40% ownership, implying vested interests in company growth. Two warning signs have been identified. Recent purchases by insiders suggest stock prices may increase. The company's largest shareholder, Emanuele Saputo, owns 39%, and the top 4 shareholders collectively own 52%.

Saputo Inc. (TSE:SAP), a leading dairy products producer and distributor, has significant insider control, with 40% ownership among key shareholders, including its largest shareholder, Emanuele Saputo, who owns 39% of the company. This substantial insider ownership suggests a strong vested interest in the company's growth and success.

Recent insider purchases have been a notable trend. Tudor Rhonda S, the SVP, Chief Accounting Officer, acquired 300 shares of BayFirst Financial Corp. [BAFN] on May 7, 2025, at a price of $14.61 per share [1]. This purchase, made within the issuer's Non-Qualified Stock Purchase Plan, indicates a positive outlook on the company's future prospects.

Analysts have also shown a favorable outlook on Saputo Inc. Several brokerages have maintained a "buy" rating for the company, with a collective average price target of C$31.00. These ratings suggest that the stock is undervalued and has significant upside potential [2].

However, there are two warning signs to consider. Firstly, the company's largest shareholder, Emanuele Saputo, owns 39% of the company, and the top four shareholders collectively own 52%. This high concentration of ownership could potentially lead to conflicts of interest or concentrated decision-making, which may not always align with the interests of minority shareholders.

Secondly, Saputo Inc. has a high payout ratio of -203.48%, which indicates that the company is paying out more in dividends than it is earning in profits. This is a red flag for investors as it suggests that the company may be struggling to generate sufficient cash flow to cover its dividend obligations.

In conclusion, while Saputo Inc.'s significant insider ownership and recent insider purchases suggest potential stock price increases, investors should be mindful of the high concentration of ownership and the company's high payout ratio. These factors could impact the company's long-term growth and profitability.

References:
[1] https://quantisnow.com/insight/svp-chief-accounting-officer-tudor-rhonda-s-acquired-300-worth-of-shares-21-units-6029476
[2] https://ca.marketscreener.com/quote/stock/SAPUTO-INC-1411574/company/