Despite Recent Gains, Global Food and Ingredients Insiders Are Still Down CA$164k

Insiders who bought CA$269k worth of Global Food and Ingredients Ltd. (CVE:PEAS) stock in the last year recovered part of their losses as the stock rose by 24% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$164k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Global Food and Ingredients

Global Food and Ingredients Insider Transactions Over The Last Year

The Independent Director Michael Wiener made the biggest insider purchase in the last 12 months. That single transaction was for CA$112k worth of shares at a price of CA$0.85 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.26). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.

Global Food and Ingredients insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.66. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Global Food and Ingredients is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Global Food and Ingredients Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Global Food and Ingredients insiders own 63% of the company, currently worth about CA$11m 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 Do The Global Food and Ingredients Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Global Food and Ingredients shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Global Food and Ingredients insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Global Food and Ingredients is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...

But note: Global Food and Ingredients 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.