Yahoo Finance Trade Alert: The CFO & Director Of Innovotech Inc. (CVE:IOT), Alan Savage, Has Just Spent CA$106k Buying 4.5% More Shares
Even if it's not a huge purchase, we think it was good to see that Alan Savage, the CFO & Director of Innovotech Inc. (CVE:IOT) recently shelled out CA$106k to buy stock, at CA$0.20 per share. However, it only increased their shares held by 4.5%, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Innovotech
The Last 12 Months Of Insider Transactions At Innovotech
In fact, the recent purchase by Alan Savage was the biggest purchase of Innovotech shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$0.20 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Innovotech share holders is that an insider was buying at near the current price. Alan Savage was the only individual insider to buy during the last year.
Alan Savage bought a total of 1.14m shares over the year at an average price of CA$0.15. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Innovotech Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Innovotech insiders own 40% of the company, currently worth about CA$3.1m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Innovotech Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Innovotech. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Innovotech is showing 4 warning signs in our investment analysis, and 2 of those make us uncomfortable...
But note: Innovotech 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.
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. 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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