Have Insiders Been Selling CanadaBis Capital Inc. (CVE:CANB) Shares This Year?

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 before you buy or sell CanadaBis Capital Inc. (CVE:CANB), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 logic dictates you should pay some attention to whether insiders are buying or selling shares. 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'.

View our latest analysis for CanadaBis Capital

CanadaBis Capital Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, Travis McIntyre, sold CA$254k worth of shares at a price of CA$0.05 per share. That means that even when the share price was below the current price of CA$0.15, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 7.0% of Travis McIntyre's holding. Travis McIntyre was the only individual insider to sell over the last year. Notably Travis McIntyre was also the biggest buyer, having purchased CA$317k worth of shares.

In the last twelve months insiders purchased 4.75m shares for CA$317k. But they sold 10.98m shares for CA$482k. Travis McIntyre ditched 10.98m shares over the year. The average price per share was CA$0.044. You can see the insider transactions (by companies and 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of CanadaBis Capital

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. CanadaBis Capital insiders own 55% of the company, currently worth about CA$12m 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 CanadaBis Capital Insiders?

It doesn't really mean much that no insider has traded CanadaBis Capital shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of CanadaBis Capital insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 6 warning signs for CanadaBis Capital you should be aware of, and 2 of these can't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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. 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.
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