Insider Spends CA$1.0m Buying More Shares In Stingray Group

Those following along with Stingray Group Inc. (TSE:RAY.A) will no doubt be intrigued by the recent purchase of shares by Mark Pathy, Independent Chairman of the company, who spent a stonking CA$1.0m on stock at an average price of CA$7.15. While that only increased their holding size by 2.5%, it is still a big swing by our standards.

Check out our latest analysis for Stingray Group

Stingray Group Insider Transactions Over The Last Year

Notably, that recent purchase by Mark Pathy is the biggest insider purchase of Stingray Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$7.30. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Stingray Group insiders decided to buy shares at close to current prices.

Stingray Group insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$5.73 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Stingray Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of Stingray Group shares, worth about CA$70m. 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 Stingray Group Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Stingray Group we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Stingray Group that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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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.

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