We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Skyharbour Resources Ltd. (CVE:SYH).
What Is Insider Selling?
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 would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Skyharbour Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Jordan Trimble for CA$159k worth of shares, at about CA$0.45 per share. So it’s clear an insider wanted to buy, even at a higher price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. That purchase may suggest an expectation of positive returns over the long term. Notably Jordan Trimble was also the biggest seller, having sold CA$156k worth of shares.
Happily, we note that in the last year insiders paid CA$209k for 498.90k shares. But insiders sold 380.40k shares worth CA$156k. Overall, Skyharbour Resources insiders were net buyers last year. The average buy price was around CA$0.42. I’d consider this a positive as it suggests insiders see value at around the current price, which is CA$0.35. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Have Skyharbour Resources Insiders Traded Recently?
We saw some Skyharbour Resources insider buying shares in the last three months. In that period insiders spent CA$13k on shares. On the other hand, Chairman James Pettit sold CA$1.2k worth of shares. While it’s good to see the insider buying, the net amount bought isn’t enough for us to gain much confidence from it.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Skyharbour Resources insiders own 2.9% of the company, worth about CA$649k. We consider this fairly low insider ownership.
So What Do The Skyharbour Resources Insider Transactions Indicate?
Insider purchases have outweighed sales, in the last three months. But the difference isn’t much. However, our analysis of transactions over the last year is heartening. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Skyharbour Resources insiders are doubting the company. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.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.