Yahoo Finance Who Has Been Buying Intouch Insight Ltd. (CVE:INX) Shares?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Intouch Insight Ltd. (CVE:INX), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
See our latest analysis for Intouch Insight
Intouch Insight Insider Transactions Over The Last Year
Independent Director Eric Beutel made the biggest insider purchase in the last 12 months. That single transaction was for CA$126k worth of shares at a price of CA$0.33 each. That means that an insider was happy to buy shares at around the current price of CA$0.36. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid CA$312k for 840000 shares. But they sold 35000 for CA$14k. Overall, Intouch Insight insiders were net buyers last year. They paid about CA$0.37 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Have Intouch Insight Insiders Traded Recently?
In the last three months, insiders sold CA$12k. However that only slightly eclipses the CA$10k worth of purchases. Ultimately the overall selling isn't enough to tell us much.
Does Intouch Insight Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 35% of Intouch Insight shares, worth about CA$2.8m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Intouch Insight Insider Transactions Indicate?
We note that there's been a little more insider selling than buying, recently. But the difference isn't enough to have us worried. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Intouch Insight and their transactions don't cause us concern. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
Of course Intouch Insight 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
