We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Imagination Park Technologies Inc. (CNSX:IP).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Imagination Park Technologies
insider James Skippen made the biggest insider purchase in the last 12 months. That single transaction was for CA$333k worth of shares at a price of CA$0.12 each. That means that an insider was happy to buy shares at above the current price of CA$0.025. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably James Skippen was also the biggest seller.
Happily, we note that in the last year insiders paid CA$580k for 5.6m shares. But they sold 1.2m for CA$142k. In the last twelve months there was more buying than selling by Imagination Park Technologies insiders. The average buy price was around CA$0.10. I’d consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Insiders at Imagination Park Technologies Have Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Imagination Park Technologies. Chairman of the Board Sheldon Inwentash purchased CA$20k worth of shares in that period. It’s good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Insider Ownership of Imagination Park Technologies
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Imagination Park Technologies insiders own 6.9% of the company, worth about CA$174k. Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Imagination Park Technologies Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we’d be more comfortable if they owned more Imagination Park Technologies stock. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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