Yahoo Finance Have Insiders Been Buying AcuityAds Holdings Inc. (CVE:AT) 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 shareholders might well want to know whether insiders have been buying or selling shares in AcuityAds Holdings Inc. (CVE:AT).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
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The Last 12 Months Of Insider Transactions At AcuityAds Holdings
Co-Founder Tal Hayek made the biggest insider purchase in the last 12 months. That single transaction was for CA$105k worth of shares at a price of CA$1.00 each. Even though the purchase was made at a significantly lower price, we still think insider buying is a positive. The insider buying may not tell us much about how insiders feel about the current share price.
In the last twelve months insiders paid CA$242k for 241.80k shares purchased. In total, AcuityAds Holdings insiders bought more than they sold over the last year. The average buy price was around CA$1.00. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today’s share price. The chart below shows insider transactions (by 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!
AcuityAds Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have AcuityAds Holdings Insiders Traded Recently?
We saw some AcuityAds Holdings insider buying shares in the last three months. Chairman of the Board Sheldon Pollack purchased CA$7.0k worth of shares in that period. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does AcuityAds Holdings Boast High Insider Ownership?
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. AcuityAds Holdings insiders own about CA$18m worth of shares. That equates to 39% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The AcuityAds Holdings Insider Transactions Indicate?
Insider purchases have outweighed sales, in the last three months. But the net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in AcuityAds Holdings and their transactions don’t cause us concern. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for AcuityAds Holdings.
But note: AcuityAds Holdings 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
