Ostrom Climate Solutions Insider Confidence Rewarded, Stock Hits CA$9.7m Market Cap

Ostrom Climate Solutions Inc. (CVE:COO) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 25%, resulting in a CA$1.9m rise in the company's market capitalisation, translating to a gain of 34% on their initial investment. As a result, the stock they originally bought for CA$387.5k is now worth CA$518.4k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Ostrom Climate Solutions

Ostrom Climate Solutions Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Guy O’Loughnane bought CA$250k worth of shares at a price of CA$0.069 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.10. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 5.18m shares for CA$388k. On the other hand they divested 62.00k shares, for CA$6.2k. Overall, Ostrom Climate Solutions insiders were net buyers during the last year. 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!

Ostrom Climate Solutions is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Are Ostrom Climate Solutions Insiders Buying Or Selling?

In the last three months, insiders sold CA$6.2k. But that was only a smidgen more than the CA$4.5k worth of buying. The net selling is so small that it's hard to draw any conclusions from these recent transactions.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Ostrom Climate Solutions insiders own 36% of the company, worth about CA$3.5m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Ostrom Climate Solutions Tell Us?

Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Ostrom Climate Solutions and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 6 warning signs for Ostrom Climate Solutions (4 are concerning!) that we believe deserve your full attention.

Of course Ostrom Climate Solutions may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com