Insiders Buying Affinor Growers Might Wish They Invested More, Stock Gains 64%

Insiders who bought Affinor Growers Inc. (CSE:AFI) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$2.5m as a result of the stock's 64% gain over the same period. Put another way, the original CA$510.6k acquisition is now worth CA$1.16m.

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.

View our latest analysis for Affinor Growers

Affinor Growers Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Nicholas Brusatore for CA$351k worth of shares, at about CA$0.08 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.18. 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.

While Affinor Growers insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Affinor Growers is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Affinor Growers Insiders Bought Stock Recently

We saw some Affinor Growers insider buying shares in the last three months. insider Karim Mohamedani bought CA$53k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership Of Affinor Growers

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 29% of Affinor Growers shares, worth about CA$1.9m. 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 Affinor Growers Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Affinor Growers we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for Affinor Growers (2 are concerning!) that we believe deserve your full attention.

But note: Affinor Growers 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 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.