Yahoo Finance Pleasing Signs As A Number Of Insiders Buy Converge Technology Solutions Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Converge Technology Solutions Corp. (TSE:CTS), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Converge Technology Solutions
Converge Technology Solutions Insider Transactions Over The Last Year
The Group CEO & Director Shaun Maine made the biggest insider purchase in the last 12 months. That single transaction was for CA$135k worth of shares at a price of CA$4.08 each. Even though the purchase was made at a significantly lower price than the recent price (CA$4.60), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Converge Technology Solutions insiders were buying shares, but not selling. 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!
Converge Technology Solutions is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Converge Technology Solutions Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Converge Technology Solutions. Not only was there no selling that we can see, but they collectively bought CA$144k worth of shares. That shows some optimism about the company's future.
Insider Ownership
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. Insiders own 6.1% of Converge Technology Solutions shares, worth about CA$55m. 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 Converge Technology Solutions Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Converge Technology Solutions shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Converge Technology Solutions, you should check out this free report on analyst forecasts for the company.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
