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Need To Know: Harvest One Cannabis Inc. (CVE:HVT) Insiders Have Been Buying Shares

Simply Wall St
·4 mins read

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 we'll take a look at whether insiders have been buying or selling shares in Harvest One Cannabis Inc. (CVE:HVT).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

Check out our latest analysis for Harvest One Cannabis

The Last 12 Months Of Insider Transactions At Harvest One Cannabis

Over the last year, we can see that the biggest insider purchase was by CEO & Director Grant Froese for CA$104k worth of shares, at about CA$0.87 per share. That means that even when the share price was higher than CA$0.15 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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.

In the last twelve months Harvest One Cannabis insiders were buying shares, but not selling. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSXV:HVT Recent Insider Trading, January 29th 2020
TSXV:HVT Recent Insider Trading, January 29th 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Harvest One Cannabis

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$378k worth of Harvest One Cannabis stock, about 1.2% of the company. I generally like to see higher levels of ownership.

So What Do The Harvest One Cannabis Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Harvest One Cannabis shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Harvest One Cannabis insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in Harvest One Cannabis, you should check out this free report on analyst forecasts for the company.

Of course Harvest One Cannabis may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.