Insider Sales At Givex Landed A Good Price

While Givex Corp. (TSE:GIVX) shareholders have had a good week with the stock up 15%, insiders can't say the same having sold stock over the past year. The value of their investment would have been higher had they waited to sell their stock.

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.

See our latest analysis for Givex

Givex Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Marc Ladouceur, sold CA$333k worth of shares at a price of CA$0.55 per share. That means that an insider was selling shares at slightly below the current price (CA$0.86). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 96% of Marc Ladouceur's stake. Marc Ladouceur was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 127.50k shares for CA$63k. On the other hand they divested 911.00k shares, for CA$500k. Marc Ladouceur divested 911.00k shares over the last 12 months at an average price of CA$0.55. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Givex

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own CA$3.5m worth of Givex stock, about 3.4% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

What Might The Insider Transactions At Givex Tell Us?

The fact that there have been no Givex insider transactions recently certainly doesn't bother us. The insider transactions at Givex are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Givex has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

But note: Givex 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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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com