Insider Stock Buyers At Affinor Growers Recouped Some Losses This Week

Insiders who purchased CA$275.0k worth of Affinor Growers Inc. (CSE:AFI) shares over the past year recouped some of their losses after price gained 17% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CA$100k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Affinor Growers Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board & Member of Advisory Board Ben Hogervorst for CA$160k worth of shares, at about CA$0.06 per share. That means that an insider was happy to buy shares at above the current price of CA$0.035. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid CA$275k for 5.01m shares. But insiders sold 2.03m shares worth CA$71k. In the last twelve months there was more buying than selling by Affinor Growers insiders. 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!

View our latest analysis for Affinor Growers

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Affinor Growers Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Affinor Growers. In total, two insiders bought CA$174k worth of shares in that time. On the other hand, President Nicholas Brusatore netted CA$41k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Affinor Growers insiders own 34% of the company, worth about CA$559k. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Affinor Growers Insiders?

The recent insider purchases are 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. Given that insiders also own a fair bit of Affinor Growers we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Affinor Growers. To that end, you should learn about the 5 warning signs we've spotted with Affinor Growers (including 4 which shouldn't be ignored).

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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.