MTL Cannabis Insider Buyers Net CA$89k Despite 11% Stock Decline

Insiders who purchased MTL Cannabis Corp. (CSE:MTLC) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. Even after accounting for the recent loss, the CA$221.6k worth of stock purchased by them is now worth CA$310.3k or in other words, their investment continues to give good returns.

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.

View our latest analysis for MTL Cannabis

The Last 12 Months Of Insider Transactions At MTL Cannabis

Earlier in the year, insider Kevin Weitzman paid CA$0.47 per share in a CA$119k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.37). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months MTL Cannabis insiders were buying shares, but not selling. Their average price was about CA$0.26. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At MTL Cannabis Have Bought Stock Recently

Over the last quarter, MTL Cannabis insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$222k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of MTL Cannabis

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. MTL Cannabis insiders own 77% of the company, currently worth about CA$34m based on the recent share price. 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 Does This Data Suggest About MTL Cannabis Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest MTL Cannabis insiders are well aligned, and quite possibly think the share price is too low. Nice! While it's good to be aware of 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. For instance, we've identified 3 warning signs for MTL Cannabis (2 are a bit unpleasant) you should be aware of.

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.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.