Beacn Wizardry and Magic Insiders Lose Out As Stock Sinks To CA$0.02

Insiders who acquired CA$589.8k worth of Beacn Wizardry and Magic Inc.'s (CVE:BECN) stock at an average price of CA$0.20 in the past 12 months may be dismayed by the recent 33% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CA$60.4k, which is not great.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Beacn Wizardry and Magic

The Last 12 Months Of Insider Transactions At Beacn Wizardry and Magic

The insider Kenneth Hallat made the biggest insider purchase in the last 12 months. That single transaction was for CA$212k worth of shares at a price of CA$0.33 each. That means that an insider was happy to buy shares at above the current price of CA$0.02. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Beacn Wizardry and Magic insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$0.20 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Beacn Wizardry and Magic 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.

Have Beacn Wizardry and Magic Insiders Traded Recently?

Insiders bought just CA$345 worth of shares in that time. That's not much at all. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Beacn Wizardry and Magic insiders own about CA$913k worth of shares (which is 54% 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.

So What Does This Data Suggest About Beacn Wizardry and Magic Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Beacn Wizardry and Magic insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 6 warning signs we've spotted with Beacn Wizardry and Magic (including 4 which are potentially serious).

But note: Beacn Wizardry and Magic 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.

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

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.