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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Greenbriar Capital Corp. (CVE:GRB), it sends a favourable message to the company's shareholders.
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.
Greenbriar Capital Insider Transactions Over The Last Year
The President & Director Clifford Webb made the biggest insider purchase in the last 12 months. That single transaction was for CA$242k worth of shares at a price of CA$1.50 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.22). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months insiders purchased 436.64k shares for CA$694k. On the other hand they divested 1.00k shares, for CA$1.4k. In total, Greenbriar Capital 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Greenbriar Capital Have Bought Stock Recently
We saw some Greenbriar Capital insider buying shares in the last three months. In total, insiders bought CA$64k worth of shares in that time. However, Independent Director J. Boyd netted CA$1.4k for sales. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
Insider Ownership of Greenbriar Capital
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Greenbriar Capital insiders own 12% of the company, worth about CA$7.8m. We do generally prefer see higher levels of insider ownership.
So What Do The Greenbriar Capital Insider Transactions Indicate?
It is good to see recent purchasing. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Greenbriar Capital stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Greenbriar Capital. Case in point: We've spotted 4 warning signs for Greenbriar Capital you should be aware of, and 3 of these are potentially serious.
But note: Greenbriar Capital may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.