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 we’ll take a look at whether insiders have been buying or selling shares in Gensource Potash Corporation (CVE:GSP).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. 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.’
Check out our latest analysis for Gensource Potash
Gensource Potash Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Michael Mueller for CA$100k worth of shares, at about CA$0.12 per share. That means that even when the share price was higher, 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. It’s not at all bad to see insiders buy shares at or above current prices.
Happily, we note that in the last year insiders bought 1.07m shares for a total of CA$127k. Overall, Gensource Potash insiders were net buyers last year. The average buy price was around CA$0.12. These transactions suggest that insiders have considered the current price of CA$0.095 attractive. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Gensource Potash Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 5.7% of Gensource Potash shares, worth about CA$2.0m, according to our data. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Does This Data Suggest About Gensource Potash Insiders?
It doesn’t really mean much that no insider has traded Gensource Potash shares in the last quarter. However, our analysis of transactions over the last year is heartening. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Gensource Potash insiders are doubting the company. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Gensource Potash may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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