Insiders' CA$1.95m Investments In Red Following Gamelancer Media's CA$2.8m Dip In Market Value

The recent price decline of 11% in Gamelancer Media Corp.'s (TSE:VRTS) stock may have disappointed insiders who bought CA$1.95m worth of shares at an average price of CA$0.10 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CA$780.0k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Gamelancer Media

The Last 12 Months Of Insider Transactions At Gamelancer Media

The President Max Desmarais made the biggest insider purchase in the last 12 months. That single transaction was for CA$1m worth of shares at a price of CA$0.10 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.04). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Gamelancer Media insiders bought shares during the last year, they didn't sell. 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!

Gamelancer Media 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.

Does Gamelancer Media Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. Gamelancer Media insiders own 41% of the company, currently worth about CA$9.1m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Gamelancer Media Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Gamelancer Media insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gamelancer Media. To that end, you should learn about the 6 warning signs we've spotted with Gamelancer Media (including 3 which are concerning).

Of course Gamelancer Media may not be the best stock to buy. So you may wish to see this free collection of high quality 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.