Have Insiders Been Buying Volatus Capital Corp. (CSE:VC) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Volatus Capital Corp. (CSE:VC).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

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. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Volatus Capital

The Last 12 Months Of Insider Transactions At Volatus Capital

In the last twelve months, the biggest single purchase by an insider was when insider John Collins bought CA$85k worth of shares at a price of CA$0.45 per share. That means that even when the share price was higher than CA$0.23 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 1.71m shares for CA$188k. On the other hand they divested 275.00k shares, for CA$55k. In the last twelve months there was more buying than selling by Volatus Capital insiders. Their average price was about CA$0.11. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

Volatus Capital is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Volatus Capital Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Volatus Capital. insider John Collins bought CA$85k worth in that time. However, insider Emma Fairhurst netted CA$55k for sales. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Insider Ownership of Volatus Capital

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. Volatus Capital insiders own about CA$2.3m worth of shares. That equates to 23% 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.

What Might The Insider Transactions At Volatus Capital Tell Us?

We note that there's been a little more insider selling than buying, recently. But the difference is small, and thus, not concerning. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Volatus Capital and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Volatus Capital is showing 6 warning signs in our investment analysis, and 4 of those are concerning...

But note: Volatus 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, 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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