Wildpack Beverage's Market Cap Drops To CA$11m Leaving Insiders With Losses

The recent 10.0% drop in Wildpack Beverage Inc.'s (CVE:CANS) stock could come as a blow to insiders who purchased US$1.40m worth of stock at an average buy price of US$1.08 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$116.8k.

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

View our latest analysis for Wildpack Beverage

The Last 12 Months Of Insider Transactions At Wildpack Beverage

In the last twelve months, the biggest single purchase by an insider was when insider Kimberly Murray bought CA$1.4m worth of shares at a price of CA$1.10 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. 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.

Wildpack Beverage insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Wildpack Beverage Boast High 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. Wildpack Beverage insiders own 44% of the company, currently worth about CA$4.7m based on the recent share price. 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 Does This Data Suggest About Wildpack Beverage Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Wildpack Beverage insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wildpack Beverage. Our analysis shows 6 warning signs for Wildpack Beverage (3 are concerning!) and we strongly recommend you look at them before investing.

Of course Wildpack Beverage may not be the best stock to buy. So you may wish to see this free collection of high quality 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.