Yahoo Finance Need To Know: Pure Global Cannabis Inc. (CVE:PURE) Insiders Have Been Buying Shares
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 shareholders might well want to know whether insiders have been buying or selling shares in Pure Global Cannabis Inc. (CVE:PURE).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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.’
View our latest analysis for Pure Global Cannabis
The Last 12 Months Of Insider Transactions At Pure Global Cannabis
Founder Malay Panchal made the biggest insider purchase in the last 12 months. That single transaction was for CA$100k worth of shares at a price of CA$0.35 each. That means that even when the share price was higher, an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
Over the last year, we can see that insiders have bought 721.50k shares worth CA$227k. In the last twelve months there was more buying than selling by Pure Global Cannabis insiders. The average buy price was around CA$0.31. This is nice to see since it implies that insiders might see value around current prices (around CA$0.14). You can see a visual depiction of insider transactions over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Pure Global Cannabis is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Pure Global Cannabis Have Bought Stock Recently
There was some insider buying at Pure Global Cannabis over the last quarter. Insiders shelled out CA$35k for shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Insider Ownership of Pure Global Cannabis
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It’s great to see that Pure Global Cannabis insiders own 18% of the company, worth about CA$3.9m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Pure Global Cannabis Insider Transactions Indicate?
Insider purchases have outweighed sales, in the last three months. But overall the difference isn’t worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders own shares in Pure Global Cannabis and we see no evidence to suggest they are worried about the future. Along with insider transactions, I recommend checking if Pure Global Cannabis is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Pure Global Cannabis may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
