Insiders may be rethinking their CA$8.6m PowerBand Solutions Inc. (CVE:PBX) investment now that the company has lost CA$8.9m in value
The recent 24% drop in PowerBand Solutions Inc.'s (CVE:PBX) stock could come as a blow to insiders who purchased CA$8.6m worth of stock at an average buy price of CA$0.31 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only CA$2.6m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for PowerBand Solutions
The Last 12 Months Of Insider Transactions At PowerBand Solutions
The Chairman of the Board Johnnie Hunt made the biggest insider purchase in the last 12 months. That single transaction was for CA$8.0m worth of shares at a price of CA$0.30 each. That means that even when the share price was higher than CA$0.095 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 27.87m shares worth CA$8.6m. But insiders sold 135.00k shares worth CA$78k. In the last twelve months there was more buying than selling by PowerBand Solutions insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
PowerBand Solutions is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
PowerBand Solutions Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at PowerBand Solutions. Director Geoffrey Belsher shelled out CA$31k for shares in that time. 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.
Insider Ownership Of PowerBand Solutions
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that PowerBand Solutions insiders own 32% of the company, worth about CA$9.0m. 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 PowerBand Solutions Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think PowerBand Solutions insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in PowerBand Solutions.
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.
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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.
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