Lowell Farms Inc. (CSE:LOWL) drops to CA$45m and insiders who purchased earlier this year lose another US$48k

By
Simply Wall St
Published
February 23, 2022
CNSX:LOWL
Source: Shutterstock

The recent 18% drop in Lowell Farms Inc.'s (CSE:LOWL) stock could come as a blow to insiders who purchased US$70k worth of stock at an average buy price of US$1.41 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$23k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Lowell Farms

Lowell Farms Insider Transactions Over The Last Year

The insider Gregory Heyman made the biggest insider purchase in the last 12 months. That single transaction was for CA$70k worth of shares at a price of CA$1.41 each. That means that even when the share price was higher than CA$0.45 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Gregory Heyman was the only individual insider to buy during the last year.

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!

insider-trading-volume
CNSX:LOWL Insider Trading Volume February 23rd 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Lowell Farms 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. Insiders own 8.8% of Lowell Farms shares, worth about CA$3.9m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Lowell Farms Insider Transactions Indicate?

The fact that there have been no Lowell Farms insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Lowell Farms stock. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for Lowell Farms you should be aware of, and 2 of these shouldn't be ignored.

Of course Lowell Farms 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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