Alan Savage Is The CFO & Director of Innovotech Inc. (CVE:IOT) And They Just Picked Up 4.5% More Shares

Even if it's not a huge purchase, we think it was good to see that Alan Savage, the CFO & Director of Innovotech Inc. (CVE:IOT) recently shelled out CA$106k to buy stock, at CA$0.20 per share. Although the purchase is not a big one, increasing their shareholding by only 4.5%, it can be interpreted as a good sign.

See our latest analysis for Innovotech

Innovotech Insider Transactions Over The Last Year

In fact, the recent purchase by Alan Savage was the biggest purchase of Innovotech shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$0.20 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Innovotech insider decided to buy shares at close to current prices. Alan Savage was the only individual insider to buy shares in the last twelve months.

Alan Savage bought 1.14m shares over the last 12 months at an average price of CA$0.15. 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Innovotech Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Innovotech insiders own 40% of the company, worth about CA$3.1m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Innovotech Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Innovotech. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 4 warning signs for Innovotech (2 make us uncomfortable!) and we strongly recommend you look at these before investing.

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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