Spectre Capital Insiders Still CA$398k Away From Original Investment Value

Insiders who bought CA$505.3k worth of Spectre Capital Corp. (CVE:SOO.P) stock in the last year have seen some of their losses recouped as the stock gained 64% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CA$398k since the time of purchase.

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 Spectre Capital

Over the last year, we can see that the biggest insider purchase was by insider Michael Townsend for CA$495k worth of shares, at about CA$0.50 per share. That means that even when the share price was higher than CA$0.09 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Michael Townsend was also the biggest seller.

Over the last year, we can see that insiders have bought 1.20m shares worth CA$505k. But insiders sold 123.00k shares worth CA$6.4k. In the last twelve months there was more buying than selling by Spectre Capital insiders. Their average price was about CA$0.42. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Spectre Capital

Spectre Capital is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Are Spectre Capital Insiders Buying Or Selling?

There was only a small bit of insider buying, worth CA$5.0k, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Spectre Capital insiders own 52% of the company, currently worth about CA$199k based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Spectre Capital Tell Us?

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. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Spectre Capital 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 Spectre Capital. For example - Spectre Capital has 6 warning signs we think you should be aware of.

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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.