Bullish Inventronics Limited (CVE:IVX) insiders were rewarded last week as their CA$7.0m investment inflated to CA$8.8m
Insiders who bought Inventronics Limited (CVE:IVX) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$2.5m as a result of the stock's 19% gain over the same period. In other words, the original CA$7.0m purchase is now worth CA$8.8m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Inventronics
The Last 12 Months Of Insider Transactions At Inventronics
Over the last year, we can see that the biggest insider purchase was by President Dan Stearne for CA$2.3m worth of shares, at about CA$2.70 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$3.38. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid CA$7.0m for 2.61m shares. But insiders sold 355.00k shares worth CA$391k. In the last twelve months there was more buying than selling by Inventronics insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Inventronics Insiders Bought Stock Recently
It's good to see that Inventronics insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$7.0m worth of shares. This makes one think the business has some good points.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Inventronics insiders own 55% of the company, worth about CA$8.9m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Inventronics Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Inventronics insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Inventronics. Every company has risks, and we've spotted 3 warning signs for Inventronics you should know about.
Of course Inventronics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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