Yahoo Finance Had insiders known BQE Water Inc. (CVE:BQE) would hit CA$37m they might have invested more last year
BQE Water Inc. (CVE:BQE) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 18%, resulting in a CA$5.6m rise in the company's market capitalisation. Put another way, the original CA$429k acquisition is now worth CA$459k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for BQE Water
The Last 12 Months Of Insider Transactions At BQE Water
They previously made a sale of -CA$66k worth of shares at a price of CA$33.00 per share. So we know that an insider sold shares at around the present share price of CA$30.00. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last twelve months insiders purchased 15.30k shares for CA$429k. On the other hand they divested 5.08k shares, for CA$165k. Overall, BQE Water insiders were net buyers during the last year. They paid about CA$28.01 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!
BQE Water is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
BQE Water Insiders Bought Stock Recently
We saw some BQE Water insider buying shares in the last three months. They bought CA$45k worth in that time. On the other hand, President David Kratochvil sold CA$15k worth of shares. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. BQE Water insiders own about CA$21m worth of shares (which is 55% of the company). 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 Does This Data Suggest About BQE Water Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, BQE Water insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for BQE Water (1 can't be ignored!) and we strongly recommend you look at them before investing.
But note: BQE Water 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.
