We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Isodiol International Inc. (CNSX:ISOL).
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, most countries require that the company discloses such transactions to the market.
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. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Isodiol International Insider Transactions Over The Last Year
The insider, Amirghasem Samimi-Ardestani, made the biggest insider sale in the last 12 months. That single transaction was for CA$4.2m worth of shares at a price of CA$15.67 each. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of CA$0.43. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Amirghasem Samimi-Ardestani.
Over the last year, we can see that insiders have bought 750k shares worth CA$1.0m. On the other hand they divested 402k shares, for CA$4.2m. 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!
Does Isodiol International Boast High Insider Ownership?
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. Isodiol International insiders own about CA$5.2m worth of shares. That equates to 21% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Isodiol International Insiders?
It doesn’t really mean much that no insider has traded Isodiol International shares in the last quarter. We don’t take much encouragement from the transactions by Isodiol International insiders. The modest level of insider ownership is, at least, some comfort. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
Of course Isodiol International 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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