Inverite Insights Insider Confidence Rewarded, Stock Hits CA$12m Market Cap

Inverite Insights Inc. (CSE:INVR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 33% resulting in a CA$3.2m addition to the company’s market value. As a result, the stock they originally bought for CA$154.5k is now worth CA$185.8k.

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.

Check out our latest analysis for Inverite Insights

The Last 12 Months Of Insider Transactions At Inverite Insights

In the last twelve months, the biggest single purchase by an insider was when Independent Director Farhan Abbas bought CA$124k worth of shares at a price of CA$0.05 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.06), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Inverite Insights insiders bought shares during the last year, they didn't sell. 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!

Inverite Insights 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.

Are Inverite Insights Insiders Buying Or Selling?

Executive Chairman Michele Marrandino bought just CA$1.3k worth of shares in that time. That's not much at all. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Insider Ownership Of Inverite Insights

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Inverite Insights insiders own about CA$3.2m worth of shares. That equates to 27% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Inverite Insights Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Inverite Insights insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Inverite Insights has 5 warning signs (and 4 which shouldn't be ignored) we think you should know about.

Of course Inverite Insights may not be the best stock to buy. So you may wish to see this free collection of high quality 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.