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$646k on stock at an average price of CA$7.03. While that only increased their holding size by 2.3%, it is still a big swing by our standards.
Stingray Group Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman Mark Pathy was not the only time they bought Stingray Group shares this year. Earlier in the year, they paid CA$5.00 per share in a CA$1m purchase. Even though the purchase was made at a significantly lower price than the recent price (CA$7.26), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Stingray Group insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Stingray Group 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.
Insider Ownership of Stingray Group
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 17% of Stingray Group shares, worth about CA$89m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Stingray Group Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Stingray Group insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Stingray Group has 2 warning signs and it would be unwise to ignore these.
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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