CFO & Director Iqbal Khan Just Bought 2.6% More Shares In StorageVault Canada Inc. (CVE:SVI)

Even if it's not a huge purchase, we think it was good to see that Iqbal Khan, the CFO & Director of StorageVault Canada Inc. (CVE:SVI) recently shelled out CA$50k to buy stock, at CA$4.04 per share. Although the purchase is not a big one, increasing their shareholding by only 2.6%, it can be interpreted as a good sign.

View our latest analysis for StorageVault Canada

The Last 12 Months Of Insider Transactions At StorageVault Canada

In fact, the recent purchase by CFO & Director Iqbal Khan was not their only acquisition of StorageVault Canada shares this year. Earlier in the year, they paid CA$3.50 per share in a CA$100k purchase. So it's clear an insider wanted to buy, at around the current price, which is CA$3.99. Of course they may have changed their mind. But this suggests they are optimistic. 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 StorageVault Canada insiders decided to buy shares at close to current prices.

In the last twelve months StorageVault Canada insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does StorageVault Canada 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. StorageVault Canada insiders own about CA$45m worth of shares. That equates to 3.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At StorageVault Canada Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest StorageVault Canada insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with StorageVault Canada and understanding it should be part of your investment process.

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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