Royal Wins Corporation (CSE:SKLL) drops to CA$16m and insiders who purchased earlier this year lose another CA$116k

The recent 19% drop in Royal Wins Corporation's (CSE:SKLL) stock could come as a blow to insiders who purchased CA$325k worth of stock at an average buy price of CA$0.20 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CA$209k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Royal Wins

Royal Wins Insider Transactions Over The Last Year

The Director Stephen Coates made the biggest insider purchase in the last 12 months. That single transaction was for CA$290k worth of shares at a price of CA$0.28 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.13). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Stephen Coates was the only individual insider to buy during the last year. We note that Stephen Coates was both the biggest buyer and the biggest seller.

Stephen Coates bought 1.60m shares over the last 12 months at an average price of CA$0.20. 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!

Royal Wins is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Royal Wins Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Royal Wins insiders own about CA$6.1m worth of shares. That equates to 38% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Royal Wins Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Royal Wins shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Royal Wins. For instance, we've identified 5 warning signs for Royal Wins (3 are a bit unpleasant) you should be aware of.

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.

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. 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.