How Much Are AREV NanoTec Brands Inc. (CSE:AREV) Insiders Taking Off The Table?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in AREV NanoTec Brands Inc. (CSE:AREV).

Do Insider Transactions Matter?

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.

Insider transactions are not the most important thing when it comes to long-term investing. 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'.

Check out our latest analysis for AREV NanoTec Brands

The Last 12 Months Of Insider Transactions At AREV NanoTec Brands

In fact, the recent sale by Michael Withrow was the biggest sale of AREV NanoTec Brands shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of CA$0.30, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 17% of Michael Withrow's holding.

All up, insiders sold more shares in AREV NanoTec Brands than they bought, over the last year. They sold for an average price of about CA$0.13. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders at AREV NanoTec Brands Have Sold Stock Recently

There was substantially more insider selling, than buying, of AREV NanoTec Brands shares over the last three months. In that time, Chairman & CEO Michael Withrow dumped CA$261k worth of shares. Meanwhile Chairman & CEO Michael Withrow bought CA$3.2k worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.

Does AREV NanoTec Brands Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that AREV NanoTec Brands insiders own 54% of the company, worth about CA$3.0m. 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 Do The AREV NanoTec Brands Insider Transactions Indicate?

Unfortunately, there has been more insider selling of AREV NanoTec Brands stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 7 warning signs we've spotted with AREV NanoTec Brands (including 5 which make us uncomfortable).

Of course AREV NanoTec Brands 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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