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It is not uncommon to see companies perform well in the years after insiders buy shares. 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 before you buy or sell Beleave Inc. (CNSX:BE), you may well want to know whether insiders have been buying or selling.
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 on the market. 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 it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Beleave
COO & Executive Chairman Vasilios Panagiotakopoulos made the biggest insider purchase in the last 12 months. That single transaction was for CA$125k worth of shares at a price of CA$0.18 each. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. It’s not at all bad to see insiders buy shares at or above current prices.
Happily, we note that in the last year insiders paid CA$172k for 927.43k shares. But they sold 2.72m for CA$501k. All up, insiders sold more shares in Beleave than they bought, over the last year. The sellers received a price of around CA$0.18, on average. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (CA$0.10), so it probably doesn’t tell us a lot about the value on offer today. You can see the insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Beleave Insiders Are Selling The Stock
Over the last three months, we’ve seen significant insider selling at Beleave. Specifically, Co-Founder Roger Ferreira ditched CA$90k worth of shares in that time, and we didn’t record any purchases whatsoever. In light of this it’s hard to argue that all the directors think that the shares are a bargain.
Insider Ownership of Beleave
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our data indicates that Beleave insiders own about CA$5.4m worth of shares (which is 10% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Beleave Insiders?
An insider sold stock recently, but they haven’t been buying. And our longer term analysis of insider transactions didn’t bring confidence, either. When you consider that most companies have higher levels of insider ownership, we’re a little wary. As the saying goes, only fools rush in. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Beleave.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.