We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Beleave Inc. (CNSX:BE).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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Beleave Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the , Gordon Harvey, sold CA$75k worth of shares at a price of CA$0.21 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take price at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.10. So it may not shed much light on insider confidence at current levels.
Over the last year we saw more insider selling of Beleave shares, than buying. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insiders at Beleave Have Sold Stock Recently
The last three months saw some Beleave insider selling. Co-Founder Roger Ferreira divested only CA$26k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn’t bother us.
Does Beleave Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Beleave insiders own 8.2% of the company, worth about CA$3.9m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Does This Data Suggest About Beleave Insiders?
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we’re not concerned. Recent sales exacerbate our caution arising from analysis of Beleave insider transactions. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Of course, the future is what matters most. So if you are interested in Beleave, you should check out this free report on analyst forecasts for the company.
But note: Beleave 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.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.