Crown Capital Partners' CA$4.6m Market Cap Fall Books Insider Losses

The recent price decline of 17% in Crown Capital Partners Inc.'s (TSE:CRWN) stock may have disappointed insiders who bought CA$385.3k worth of shares at an average price of CA$7.04 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CA$219.9k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Crown Capital Partners

The Last 12 Months Of Insider Transactions At Crown Capital Partners

Over the last year, we can see that the biggest insider purchase was by Independent Director Charles Frischer for CA$119k worth of shares, at about CA$8.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$4.02). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid CA$385k for 54.70k shares. But they sold 1.00k shares for CA$5.0k. Overall, Crown Capital Partners insiders were net buyers during the last year. They paid about CA$7.04 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

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.

Are Crown Capital Partners Insiders Buying Or Selling?

There was some insider buying at Crown Capital Partners over the last quarter. In that period Independent Director John Brussa spent CA$16k on shares. But insider Michael Lee-Chin sold CA$5.0k worth. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Does Crown Capital Partners Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Crown Capital Partners insiders own about CA$11m worth of shares (which is 44% of the company). 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 Do The Crown Capital Partners Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Crown Capital Partners insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Crown Capital Partners. For example, Crown Capital Partners has 3 warning signs (and 2 which are concerning) we think 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 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.