ARCpoint's CA$1.5m Market Cap Fall Books Insider Losses

Insiders who bought US$618.6k worth of ARCpoint Inc.'s (CVE:ARC) stock at an average buy price of US$0.14 over the last year may be disappointed by the recent 15% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$385.8k, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for ARCpoint

The Last 12 Months Of Insider Transactions At ARCpoint

The insider Jeffrey Harris made the biggest insider purchase in the last 12 months. That single transaction was for CA$269k worth of shares at a price of CA$0.13 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.085). 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.

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

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

Insiders At ARCpoint Have Bought Stock Recently

Over the last quarter, ARCpoint insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$556k worth of shares. That shows some optimism about the company's future.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ARCpoint insiders own 67% of the company, currently worth about CA$5.8m 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.

What Might The Insider Transactions At ARCpoint Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about ARCpoint. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ARCpoint. Our analysis shows 5 warning signs for ARCpoint (4 are a bit unpleasant!) and we strongly recommend you look at them before investing.

Of course ARCpoint 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.