A CA$3.2m Market Cap Boost Pleasing ToIonik Insiders

Insiders who bought Ionik Corporation (CVE:INIK) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$3.2m as a result of the stock's 11% gain over the same period. As a result, their original purchase of US$939.5k worth of stock is now worth US$1.12m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Ionik

The Last 12 Months Of Insider Transactions At Ionik

The President Kevin Ferrell made the biggest insider purchase in the last 12 months. That single transaction was for CA$399k worth of shares at a price of CA$0.086 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.10. 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.

Happily, we note that in the last year insiders paid CA$939k for 10.64m shares. On the other hand they divested 6.49m shares, for CA$558k. Overall, Ionik insiders were net buyers during the last year. 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!

Ionik is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Ionik Insiders Bought Stock Recently

There has been significantly more insider buying, than selling, at Ionik, over the last three months. Insiders spent CA$939k on shares. On the other hand, insiders netted CA$558k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. Ionik insiders own about CA$11m worth of shares. That equates to 32% 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.

What Might The Insider Transactions At Ionik Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. 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 Ionik shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Ionik (including 1 which is a bit concerning).

Of course Ionik 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.