CardioComm Solutions Reaches CA$3.9m Market Cap Benefiting Insider Stock Buying

Last week, CardioComm Solutions, Inc. (CVE:EKG) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 25% last week, resulting in a CA$965k increase in the company's market worth, implying a 150% gain on their initial purchase. In other words, the original CA$318.8k purchase is now worth CA$797.0k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for CardioComm Solutions

CardioComm Solutions Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Daniel Grima bought CA$295k worth of shares at a price of CA$0.01 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.025. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While CardioComm Solutions insiders bought shares during the last year, they didn't sell. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of CardioComm Solutions

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CardioComm Solutions insiders own about CA$1.2m worth of shares. That equates to 30% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The CardioComm Solutions Insider Transactions Indicate?

The fact that there have been no CardioComm Solutions insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in CardioComm Solutions and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 6 warning signs (5 make us uncomfortable!) that you ought to be aware of before buying any shares in CardioComm Solutions.

Of course CardioComm Solutions 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.