Even if it's not a huge purchase, we think it was good to see that Robert Anson, the Founder of Loop Insights Inc. ( CVE:MTRX ) recently shelled out CA$65k to buy stock, at CA$0.10 per share. Even though that isn't a massive buy, it did increase their direct individual holding by a large amount, which is arguably a good sign.
Loop Insights Insider Transactions Over The Last Year
In fact, the recent purchase by Robert Anson was the biggest purchase of Loop Insights shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (CA$0.17), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Loop Insights insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.14. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels, which is around CA$0.17. The chart below shows insider transactions (by 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.
Insider Ownership of Loop Insights
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 looking at our data, insiders own CA$474k worth of Loop Insights stock, about 3.0% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.
(Edit note 03/06/2020: In a press release from the company on 2 June 2020, the company revealed total insider ownership including indirect ownership interests totalled approximately 40%. Taking this into consideration we believe there to be significant insider ownership overall.)
So What Do The Loop Insights Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the including the fairly high (overall) insider ownership; their transactions suggest that they are quite positive on Loop Insights stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Loop Insights you should know about.
But note: Loop Insights 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org . 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.
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. Thank you for reading.