Western Investment Company of Canada Independent Director Acquires 38% More Stock

Investors who take an interest in The Western Investment Company of Canada Limited (CVE:WI) should definitely note that the Independent Director, Kabir Jivraj, recently paid CA$0.40 per share to buy CA$250k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 38%.

View our latest analysis for Western Investment Company of Canada

The Last 12 Months Of Insider Transactions At Western Investment Company of Canada

Notably, that recent purchase by Kabir Jivraj is the biggest insider purchase of Western Investment Company of Canada shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.47. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Western Investment Company of Canada is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Western Investment Company of Canada insiders own 43% of the company, worth about CA$11m. 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 Western Investment Company of Canada Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Western Investment Company of Canada. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Western Investment Company of Canada. Our analysis shows 3 warning signs for Western Investment Company of Canada (1 is a bit concerning!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.