Insider Buyers At Beacn Wizardry and Magic Recover Some Losses, But Still Down CA$393k

Insiders who bought CA$588.8k worth of Beacn Wizardry and Magic Inc. (CVE:BECN) stock in the last year recovered part of their losses as the stock rose by 160% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CA$393k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Beacn Wizardry and Magic Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Kenneth Hallat bought CA$212k worth of shares at a price of CA$0.33 per share. That means that an insider was happy to buy shares at above the current price of CA$0.065. 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. 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.

In the last twelve months Beacn Wizardry and Magic insiders were buying shares, but not selling. Their average price was about CA$0.20. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Beacn Wizardry and Magic

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).

Have Beacn Wizardry and Magic Insiders Traded Recently?

There was only a small bit of insider buying, worth CA$135, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Does Beacn Wizardry and Magic Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Beacn Wizardry and Magic insiders own about CA$2.0m worth of shares (which is 54% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Beacn Wizardry and Magic Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Beacn Wizardry and Magic insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Beacn Wizardry and Magic. To help with this, we've discovered 4 warning signs (3 can't be ignored!) that you ought to be aware of before buying any shares in Beacn Wizardry and Magic.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.