Yahoo Finance Are Insiders Buying Radient Technologies Inc. (CVE:RTI) Stock?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Radient Technologies Inc. (CVE:RTI).
Do Insider Transactions Matter?
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.
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. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for Radient Technologies
Radient Technologies Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Independent Non-Executive Director Jan Petzel sold CA$763k worth of shares at a price of CA$1.61 per share. That is hardly a positive sign, even though it took place above the latest price (CA$1.01). So it may not tell us anything about how insiders feel about the current share price. Notably Jan Petzel was also the biggest buyer, having purchased CA$1.5m worth of shares.
Happily, we note that in the last year insiders paid CA$1.5m for 1.34m shares. But they sold 584.80k for CA$882k. Overall, Radient Technologies insiders were net buyers last year. The average buy price was around CA$1.10. This is nice to see since it implies that insiders might see value around current prices (around CA$1.01). The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Radient Technologies Have Sold Stock Recently
There was substantially more insider selling, than buying, of Radient Technologies shares over the last three months. We note insiders cashed in CA$119k worth of shares. On the flip side, Chairman of the Board Francesco Ferlaino spent CA$51k on purchasing shares. Generally this level of net selling might be considered a bit bearish.
Does Radient Technologies Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.3% of Radient Technologies shares, worth about CA$14m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Radient Technologies Insider Transactions Indicate?
The stark truth for Radient Technologies is that there has been more insider selling than insider buying in the last three months. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So the recent selling doesn’t worry us too much. 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.
Of course Radient Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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.
