Yahoo Finance A number of insiders bought Ackroo Inc. (CVE:AKR) stock last year, which is great news for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Ackroo Inc. (CVE:AKR), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Ackroo
Ackroo Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Acting Chairman Steve Levely bought CA$250k worth of shares at a price of CA$0.10 per share. That means that an insider was happy to buy shares at above the current price of CA$0.07. 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 3.33m shares worth CA$331k. But insiders sold 160.00k shares worth CA$14k. In total, Ackroo insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) 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!
Ackroo 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.
Ackroo Insiders Bought Stock Recently
Over the last quarter, Ackroo insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$300k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Ackroo insiders own about CA$1.0m worth of shares (which is 13% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Ackroo Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Ackroo stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ackroo. Be aware that Ackroo is showing 4 warning signs in our investment analysis, and 3 of those are a bit unpleasant...
But note: Ackroo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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