Have Insiders Been Selling Scotch Creek Ventures Inc. (CSE:SCV) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Scotch Creek Ventures Inc. (CSE:SCV).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Scotch Creek Ventures

The Last 12 Months Of Insider Transactions At Scotch Creek Ventures

The CEO, President & Director, David Ryan, made the biggest insider sale in the last 12 months. That single transaction was for CA$180k worth of shares at a price of CA$0.12 each. That means that even when the share price was below the current price of CA$0.45, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 41% of David Ryan's holding.

Over the last year, we can see that insiders have bought 1.32m shares worth CA$106k. But they sold 3.00m shares for CA$360k. Over the last year we saw more insider selling of Scotch Creek Ventures shares, than buying. 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!

I will like Scotch Creek Ventures better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Scotch Creek Ventures Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Scotch Creek Ventures shares. In total, insiders sold CA$360k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 27% of Scotch Creek Ventures shares, worth about CA$2.2m. 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 Scotch Creek Ventures Tell Us?

Insiders haven't bought Scotch Creek Ventures stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Scotch Creek Ventures. At Simply Wall St, we've found that Scotch Creek Ventures has 5 warning signs (3 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course Scotch Creek Ventures 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, but not derivative transactions.

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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. 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.
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