Inverite Insights' Market Cap Up CA$3.9m Following Year Of Insider Stock Buying

Inverite Insights Inc. (CSE:INVR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 23% resulting in a CA$3.9m addition to the company’s market value. As a result, the stock they originally bought for CA$296.5k is now worth CA$710.3k.

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.

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The Last 12 Months Of Insider Transactions At Inverite Insights

The Independent Director Farhan Abbas made the biggest insider purchase in the last 12 months. That single transaction was for CA$155k worth of shares at a price of CA$0.15 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.40. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Inverite Insights insiders may have bought shares in the last year, but they didn't sell any. 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 Inverite Insights

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.

Inverite Insights Insiders Bought Stock Recently

Over the last quarter, Inverite Insights insiders have spent a meaningful amount on shares. In total, insiders bought CA$253k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Does Inverite Insights Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 25% of Inverite Insights shares, worth about CA$4.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Inverite Insights Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Inverite Insights shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Inverite Insights. When we did our research, we found 4 warning signs for Inverite Insights (3 are concerning!) that we believe deserve your full attention.

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.