Yahoo Finance With stock up 20%, Insiders of Haivision Systems Inc. (TSE:HAI) must be wishing they had bought more last year
Haivision Systems Inc. (TSE:HAI) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 20%, resulting in a CA$22m rise in the company's market capitalisation. As a result, the stock they originally bought for CA$144k is now worth CA$192k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Haivision Systems
Haivision Systems Insider Transactions Over The Last Year
The Chairman Miroslav Wicha made the biggest insider purchase in the last 12 months. That single transaction was for CA$82k worth of shares at a price of CA$3.38 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$4.50. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Miroslav Wicha purchased 42.68k shares over the year. The average price per share was CA$3.36. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Haivision Systems Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Haivision Systems insiders own 29% of the company, worth about CA$37m. 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 Does This Data Suggest About Haivision Systems Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Haivision Systems insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Haivision Systems. Case in point: We've spotted 2 warning signs for Haivision Systems you should be aware of, and 1 of these is a bit unpleasant.
Of course Haivision Systems may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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