An Insider At Rubicon Organics Lowered Their Holding Recently

Looking at Rubicon Organics Inc.'s (CVE:ROMJ ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Rubicon Organics

Rubicon Organics Insider Transactions Over The Last Year

The insider, Eric Savics, made the biggest insider sale in the last 12 months. That single transaction was for CA$379k worth of shares at a price of CA$0.38 each. That means that an insider was selling shares at around the current price of CA$0.36. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Eric Savics was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 633.50k shares worth CA$264k. But they sold 989.00k shares for CA$379k. 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!

I will like Rubicon Organics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Rubicon Organics Insiders Bought Stock Recently

There was some insider buying at Rubicon Organics over the last quarter. Insiders shelled out CA$18k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership Of Rubicon Organics

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Rubicon Organics insiders own 44% of the company, worth about CA$9.3m. 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 Rubicon Organics Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Rubicon Organics insider transactions. 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. While conducting our analysis, we found that Rubicon Organics has 2 warning signs and it would be unwise to ignore them.

Of course Rubicon Organics 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 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.