Sol Strategies Up 37%, Insider Buyers Are Up 92%

Insiders who bought Sol Strategies Inc. (CSE:HODL) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$9.5m as a result of the stock's 37% gain over the same period. As a result, the stock they originally bought for CA$1.23m is now worth CA$2.36m.

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.

Check out our latest analysis for Sol Strategies

Sol Strategies Insider Transactions Over The Last Year

Executive Chairman Antanas Guoga previously made an even bigger purchase of CA$173k worth of shares at a price of CA$0.12 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.24. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Sol Strategies insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Sol Strategies 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.

Insiders At Sol Strategies Have Bought Stock Recently

Over the last quarter, Sol Strategies insiders have spent a meaningful amount on shares. Executive Chairman Antanas Guoga spent CA$422k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Does Sol Strategies Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Sol Strategies insiders own 40% of the company, worth about CA$11m. 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 Sol Strategies Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Sol Strategies. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sol Strategies. Be aware that Sol Strategies is showing 4 warning signs in our investment analysis, and 2 of those don't sit too well with us...

But note: Sol Strategies 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.

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