Black Swan Graphene Loses CA$6.0m Market Value But Insiders See Windfall Of CA$20k

Insiders who bought Black Swan Graphene Inc. (CVE:SWAN) in the last 12 months may probably not pay attention to the stock's recent 17% drop. After taking the recent loss into consideration, the CA$94.5k worth of stock they bought is now worth CA$114.6k, indicating that their investment yielded a positive return.

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 Black Swan Graphene

The Last 12 Months Of Insider Transactions At Black Swan Graphene

In the last twelve months, the biggest single purchase by an insider was when Vice President of Corporate Development Paul Hardy bought CA$70k worth of shares at a price of CA$0.07 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.095. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Black Swan Graphene insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$0.078 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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. 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).

Insider Ownership Of Black Swan Graphene

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$773k worth of Black Swan Graphene stock, about 2.7% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Black Swan Graphene Insiders?

It doesn't really mean much that no insider has traded Black Swan Graphene shares in the last quarter. 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 Black Swan Graphene stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Black Swan Graphene (1 is a bit concerning) you should be aware of.

But note: Black Swan Graphene 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.