Wildpack Beverage Inc. (CVE:CANS) up 24%, but insiders are still down 77% after purchasing US$1.4m of stock last year

Insiders who bought US$1.4m worth of Wildpack Beverage Inc. (CVE:CANS) stock in the last year have seen some of their losses recouped as the stock gained 24% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$1.1m 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.

Check out our latest analysis for Wildpack Beverage

The Last 12 Months Of Insider Transactions At Wildpack Beverage

Over the last year, we can see that the biggest insider purchase was by insider Kimberly Murray for CA$1.4m worth of shares, at about CA$1.10 per share. That means that an insider was happy to buy shares at above the current price of CA$0.23. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

In the last twelve months Wildpack Beverage insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Wildpack Beverage is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Are Wildpack Beverage Insiders Buying Or Selling?

There was only a small bit of insider buying, worth CA$817, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Does Wildpack Beverage Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Wildpack Beverage insiders own 37% of the company, worth about CA$9.6m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Wildpack Beverage 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. Overall we don't see anything to make us think Wildpack Beverage insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wildpack Beverage. Every company has risks, and we've spotted 4 warning signs for Wildpack Beverage (of which 1 makes us a bit uncomfortable!) you should know about.

But note: Wildpack Beverage 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, but not derivative transactions.

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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.