It is not uncommon to see companies perform well in the years after insiders buy shares. 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 ImmunoPrecise Antibodies Ltd. (CVE:IPA).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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.’
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ImmunoPrecise Antibodies Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Member of Advisory Board, Guy Champagne, sold CA$126k worth of shares at a price of CA$1.09 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take price at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.70. So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid CA$24k for 36600 shares. On the other hand they divested 340k shares, for CA$374k. In total, ImmunoPrecise Antibodies insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does ImmunoPrecise Antibodies 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. We usually like to see fairly high levels of insider ownership. From our data, it seems that ImmunoPrecise Antibodies insiders own 13% of the company, worth about CA$6.0m. But they may have an indirect interest through a corporate structure that we haven’t picked up on. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Do The ImmunoPrecise Antibodies Insider Transactions Indicate?
The fact that there have been no ImmunoPrecise Antibodies insider transactions recently certainly doesn’t bother us. Our analysis of ImmunoPrecise Antibodies insider transactions leaves us unenthusiastic. And we’re not picking up on high enough insider ownership to give us any comfort. Of course, the future is what matters most. So if you are interested in ImmunoPrecise Antibodies, you should check out this free report on analyst forecasts for the company.
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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.