With Personas Social Up 33%, Insider Buyers Count Their Returns

Insiders who bought Personas Social Incorporated (CVE:KEEK) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$5.2m as a result of the stock's 33% gain over the same period. As a result, their original purchase of CA$162.7k worth of stock is now worth CA$202.7k.

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.

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The Last 12 Months Of Insider Transactions At Personas Social

Over the last year, we can see that the biggest insider purchase was by Chairman Mark Itwaru for CA$114k worth of shares, at about CA$0.067 per share. That means that even when the share price was higher than CA$0.06 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Mark Itwaru.

Mark Itwaru bought 3.38m shares over the last 12 months at an average price of CA$0.048. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Personas Social

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Personas Social

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. Personas Social insiders own about CA$6.5m worth of shares. That equates to 37% 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 Personas Social Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Personas Social shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Personas Social and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Personas Social. Be aware that Personas Social is showing 4 warning signs in our investment analysis, and 3 of those are significant...

But note: Personas Social may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.