Wilmot Matthews Is The Non-Independent Director of SQI Diagnostics Inc. (CVE:SQD) And They Just Picked Up 8.1% More Shares
Those following along with SQI Diagnostics Inc. (CVE:SQD) will no doubt be intrigued by the recent purchase of shares by Wilmot Matthews, Non-Independent Director of the company, who spent a stonking CA$1.3m on stock at an average price of CA$0.19. While that only increased their holding size by 8.1%, it is still a big swing by our standards.
View our latest analysis for SQI Diagnostics
SQI Diagnostics Insider Transactions Over The Last Year
Notably, that recent purchase by Wilmot Matthews is the biggest insider purchase of SQI Diagnostics shares that we've seen in the last year. That means that even when the share price was higher than CA$0.17 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 14.04m shares worth CA$2.7m. But insiders sold 1.88m shares worth CA$822k. In total, SQI Diagnostics insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
SQI Diagnostics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. SQI Diagnostics insiders own 46% of the company, currently worth about CA$30m based on the recent share price. 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 SQI Diagnostics 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. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about SQI Diagnostics. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SQI Diagnostics. For example, SQI Diagnostics has 4 warning signs (and 2 which don't sit too well with us) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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