Yahoo Finance Are Insiders Buying IBC Advanced Alloys Corp. (CVE:IB) Stock?
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in IBC Advanced Alloys Corp. (CVE:IB).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
Check out our latest analysis for IBC Advanced Alloys
IBC Advanced Alloys Insider Transactions Over The Last Year
Independent Chairman of the Board Mark Smith made the biggest insider purchase in the last 12 months. That single transaction was for CA$666k worth of shares at a price of CA$0.14 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.20. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 9.18m shares for CA$1.2m. On the other hand they divested 132496 shares, for CA$25k. In the last twelve months there was more buying than selling by IBC Advanced Alloys insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
IBC Advanced Alloys is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at IBC Advanced Alloys Have Bought Stock Recently
It's good to see that IBC Advanced Alloys insiders have made notable investments in the company's shares. Independent Chairman of the Board Mark Smith spent CA$1.0m on stock, and there wasn't any selling. This makes one think the business has some good points.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 18% of IBC Advanced Alloys shares, worth about CA$2.2m. 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 IBC Advanced Alloys Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of IBC Advanced Alloys we think they are probably pretty confident of a bright future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.
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