Insiders Give Up CA$135k As Beacn Wizardry and Magic Stock Drops To CA$0.04

The recent 11% drop in Beacn Wizardry and Magic Inc.'s (CVE:BECN) stock could come as a blow to insiders who purchased CA$175.5k worth of stock at an average buy price of CA$0.18 over the past 12 months. 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$40.1k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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

In the last twelve months, the biggest single purchase by an insider was when insider Kenneth Hallat bought CA$174k worth of shares at a price of CA$0.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.04). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Beacn Wizardry and Magic insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Beacn Wizardry and Magic

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Are Beacn Wizardry and Magic Insiders Buying Or Selling?

CEO & Director Craig Fraser bought just CA$121 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.

Does Beacn Wizardry and Magic Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Beacn Wizardry and Magic insiders own 54% of the company, worth about CA$1.4m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

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

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. 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 help with this, we've discovered 5 warning signs (4 don't sit too well with us!) that you ought to be aware of before buying any shares in Beacn Wizardry and Magic.

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 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.