Insider Buying: The GreenPower Motor Company Inc. (CVE:GPV) Executive Chairman & CEO Just Bought US$109k Worth Of Shares

By
Simply Wall St
Published
May 05, 2021
TSXV:GPV
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the GreenPower Motor Company Inc. (CVE:GPV) Executive Chairman & CEO, Fraser Atkinson, recently bought CA$109k worth of stock, for CA$21.75 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for GreenPower Motor

GreenPower Motor Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Chairman & CEO Fraser Atkinson was not the only time they bought GreenPower Motor shares this year. Earlier in the year, they paid CA$26.09 per share in a CA$652k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$21.24). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid CA$1.2m for 72.86k shares. But they sold 5.00k shares for CA$136k. Overall, GreenPower Motor insiders were net buyers during the last year. They paid about CA$17.16 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

insider-trading-volume
TSXV:GPV Insider Trading Volume May 6th 2021

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

Insider Ownership of GreenPower Motor

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 GreenPower Motor insiders own 27% of the company, worth about CA$121m. 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 GreenPower Motor Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about GreenPower Motor. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with GreenPower Motor and understanding them should be part of your investment process.

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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