Insiders of Water Ways Technologies Inc. (CVE:WWT) forfeit last week's 20% gains after selling stock earlier this year

By
Simply Wall St
Published
November 14, 2021
TSXV:WWT
Source: Shutterstock

While Water Ways Technologies Inc. (CVE:WWT) shareholders have had a good week with the stock up 20%, insiders can't say the same having sold stock over the past year. The return on their investment would have been much higher had they held on to their stock.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Water Ways Technologies

The Last 12 Months Of Insider Transactions At Water Ways Technologies

The President, Ohad Haber, made the biggest insider sale in the last 12 months. That single transaction was for CA$240k worth of shares at a price of CA$0.12 each. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$0.30. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 3.5% of Ohad Haber's holding. Ohad Haber was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
TSXV:WWT Insider Trading Volume November 15th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Water Ways Technologies

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Water Ways Technologies insiders own about CA$17m worth of shares (which is 40% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Water Ways Technologies Tell Us?

The fact that there have been no Water Ways Technologies insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Water Ways Technologies insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Water Ways Technologies. Case in point: We've spotted 4 warning signs for Water Ways Technologies you should be aware of, and 2 of these are a bit unpleasant.

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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