CDN Maverick Capital Reaches CA$3.1m Market Cap Benefiting Insider Stock Buying

Insiders who bought CDN Maverick Capital Corp. (CSE:CDN) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$356k as a result of the stock's 13% gain over the same period. As a result, their original purchase of CA$141.6k worth of stock is now worth CA$206.5k.

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.

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The Last 12 Months Of Insider Transactions At CDN Maverick Capital

The Executive Chairman Sandy MacDougall made the biggest insider purchase in the last 12 months. That single transaction was for CA$107k worth of shares at a price of CA$0.11 each. Even though the purchase was made at a significantly lower price than the recent price (CA$0.18), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

CDN Maverick Capital 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. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for CDN Maverick Capital

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).

CDN Maverick Capital Insiders Bought Stock Recently

We saw some CDN Maverick Capital insider buying shares in the last three months. Insiders shelled out CA$24k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does CDN Maverick Capital Boast High Insider Ownership?

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. CDN Maverick Capital insiders own about CA$627k worth of shares. That equates to 20% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The CDN Maverick Capital Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think CDN Maverick Capital insiders are doubting the company, and they do own shares. 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. Case in point: We've spotted 4 warning signs for CDN Maverick Capital you should be aware of, and 2 of these are a bit unpleasant.

But note: CDN Maverick Capital 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 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.