Insiders Sold Rocky Mountain Liquor Prematurely At CA$0.19 With Stock Trading Higher \

Despite the fact that Rocky Mountain Liquor Inc.'s (CVE:RUM) value has dropped 33% in the last week insiders who sold CA$90k worth of stock in the past 12 months have had less success. Given that the average selling price of CA$0.19 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Rocky Mountain Liquor

Rocky Mountain Liquor Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Jonathan Armoyan, sold CA$90k worth of shares at a price of CA$0.19 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$0.10. So it may not tell us anything about how insiders feel about the current share price. Jonathan Armoyan was the only individual insider to sell shares in the last twelve months. Notably Jonathan Armoyan was also the biggest buyer, having purchased CA$7.1k worth of shares.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Rocky Mountain Liquor better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Rocky Mountain Liquor

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Rocky Mountain Liquor insiders own 25% of the company, worth about CA$1.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Rocky Mountain Liquor Insiders?

It doesn't really mean much that no insider has traded Rocky Mountain Liquor shares in the last quarter. Our analysis of Rocky Mountain Liquor insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rocky Mountain Liquor. Every company has risks, and we've spotted 4 warning signs for Rocky Mountain Liquor (of which 3 are a bit unpleasant!) you should know about.

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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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.