Investors who take an interest in Wildflower Brands Inc. (CSE:SUN) should definitely note that the CFO, Corporate Secretary & Director, Stephen Pearce, recently paid CA$0.15 per share to buy CA$150k worth of the stock. Although the purchase only increased their holding by 9.2%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Wildflower Brands
Over the last year, we can see that the biggest insider purchase was by CEO, President & Director William MacLean for CA$8.0m worth of shares, at about CA$0.75 per share. That means that an insider was happy to buy shares at above the current price of CA$0.09. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 23.70m shares for CA$17m. But insiders sold 132500 shares worth CA$28k. In total, Wildflower Brands insiders bought more than they sold over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Wildflower Brands is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Wildflower Brands
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 40% of Wildflower Brands shares, worth about CA$4.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Wildflower Brands Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Wildflower Brands insiders are well aligned, and that they may think the share price is too low. 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. For example, Wildflower Brands has 6 warning signs (and 4 which are concerning) we think you should know about.
But note: Wildflower Brands 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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