It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Quinsam Capital Corporation (CNSX:QCA).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At Quinsam Capital
CEO & Director Roger Dent made the biggest insider purchase in the last 12 months. That single transaction was for CA$106k worth of shares at a price of CA$0.21 each. That means that an insider was happy to buy shares at around the current price. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In any event it’s generally a positive if insiders are buying shares at around the current price.
Over the last year, we can see that insiders have bought 1.04m shares worth CA$258k. But they sold 189.70k for CA$69k. In total, Quinsam Capital insiders bought more than they sold over the last year. They paid about CA$0.25 on average. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price (CA$0.25). You can see the insider transactions (by 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!
Quinsam Capital is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Quinsam Capital Insiders Bought Stock Recently
Over the last quarter, Quinsam Capital insiders have spent a meaningful amount on shares. Specifically, Roger Dent bought CA$106k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
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. Our data indicates that Quinsam Capital insiders own about CA$3.5m worth of shares (which is 12% of the company). Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Does This Data Suggest About Quinsam Capital Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Quinsam Capital stock. Along with insider transactions, I recommend checking if Quinsam Capital is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Quinsam Capital may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.