Yahoo Finance As Ostrom Climate Solutions Inc. (CVE:COO) hits CA$7.3m market cap, insiders may be dismayed about not purchasing higher quantities
Ostrom Climate Solutions Inc. (CVE:COO) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 27%, resulting in a CA$1.5m rise in the company's market capitalisation. Put another way, the original CA$480k acquisition is now worth CA$1.2m.
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 Ostrom Climate Solutions
The Last 12 Months Of Insider Transactions At Ostrom Climate Solutions
The Independent Director Guy O’Loughnane made the biggest insider purchase in the last 12 months. That single transaction was for CA$330k worth of shares at a price of CA$0.065 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.095. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid CA$480k for 12.66m shares. But insiders sold 5.50k shares worth CA$687. In total, Ostrom Climate Solutions insiders bought more than they sold over the last year. Their average price was about CA$0.038. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ostrom Climate 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.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ostrom Climate Solutions insiders own about CA$1.8m worth of shares. That equates to 24% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Ostrom Climate Solutions Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Ostrom Climate Solutions shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Ostrom Climate Solutions insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ostrom Climate Solutions. Be aware that Ostrom Climate Solutions is showing 5 warning signs in our investment analysis, and 3 of those are significant...
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
