With CardioComm Solutions Up 50%, Insider Buyers Count Their Returns

CardioComm Solutions, Inc. (CVE:EKG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 50%, resulting in a CA$965k rise in the company's market capitalisation, translating to a gain of 50% on their initial investment. In other words, the original CA$318.8k purchase is now worth CA$478.2k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for CardioComm Solutions

The Last 12 Months Of Insider Transactions At CardioComm Solutions

The Independent Director Daniel Grima made the biggest insider purchase in the last 12 months. That single transaction was for CA$295k worth of shares at a price of CA$0.01 each. Even though the purchase was made at a significantly lower price than the recent price (CA$0.015), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months CardioComm Solutions 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. 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).

Does CardioComm Solutions 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. CardioComm Solutions insiders own about CA$865k worth of shares. That equates to 30% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The CardioComm Solutions Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think CardioComm Solutions insiders are doubting the company, and they do own shares. While it's good to be aware of 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. Our analysis shows 5 warning signs for CardioComm Solutions (4 are significant!) and we strongly recommend you look at these before investing.

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.