We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Great Atlantic Resources Corp. (CVE:GR).
What Is Insider Buying?
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 Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Great Atlantic Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by President Christopher Anderson for CA$191k worth of shares, at about CA$0.12 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of CA$0.05. So it may not shed much light on insider confidence at current levels. Notably Christopher Anderson was also the biggest buyer, having purchased CA$120k worth of shares.
All up, insiders sold more shares in Great Atlantic Resources than they bought, over the last year. The average sell price was around CA$0.087. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is CA$0.05). The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Great Atlantic Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Great Atlantic Resources Insiders Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Great Atlantic Resources. President Christopher Anderson bought CA$52k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
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. Our data indicates that Great Atlantic Resources insiders own about CA$267k worth of shares (which is 9.2% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Great Atlantic Resources Insider Transactions Indicate?
It is good to see recent insider purchase. On the other hand the transaction history, over the last year, isn’t so positive. The transactions over the last year don’t give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Thank you for reading.