Have Insiders Been Buying Wishpond Technologies Ltd. (CVE:WISH) Shares?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Wishpond Technologies Ltd. (CVE:WISH).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Wishpond Technologies

The Last 12 Months Of Insider Transactions At Wishpond Technologies

The Director Hossein Malek made the biggest insider purchase in the last 12 months. That single transaction was for CA$8.7m worth of shares at a price of CA$0.75 each. We do like to see buying, but this purchase was made at well below the current price of CA$1.75. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Wishpond Technologies insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Wishpond Technologies 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.

Wishpond Technologies Insiders Bought Stock Recently

Over the last quarter, Wishpond Technologies insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$77k worth of shares. This is a positive in our book as it implies some confidence.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Wishpond Technologies insiders own 51% of the company, currently worth about CA$47m 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.

So What Does This Data Suggest About Wishpond Technologies Insiders?

It is good to see recent purchasing. 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. When combined with notable insider ownership, these factors suggest Wishpond Technologies insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wishpond Technologies. To help with this, we've discovered 3 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Wishpond Technologies.

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, but not derivative transactions.

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