Jeffrey Dean Is The Independent Director of ViveRE Communities Inc. (CVE:VCOM) And They Just Picked Up 7.5% More Shares

Even if it's not a huge purchase, we think it was good to see that Jeffrey Dean, the Independent Director of ViveRE Communities Inc. (CVE:VCOM) recently shelled out CA$67k to buy stock, at CA$0.20 per share. Although the purchase is not a big one, increasing their shareholding by only 7.5%, it can be interpreted as a good sign.

See our latest analysis for ViveRE Communities

ViveRE Communities Insider Transactions Over The Last Year

The insider Denis Arsenault made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.8m worth of shares at a price of CA$0.24 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.20). 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 8.36m shares worth CA$2.0m. But they sold 37.00k shares for CA$7.6k. In the last twelve months there was more buying than selling by ViveRE Communities insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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 ViveRE Communities Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. ViveRE Communities insiders own about CA$6.0m worth of shares. That equates to 23% 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.

So What Do The ViveRE Communities Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of ViveRE Communities we think they are probably pretty confident of a bright future. 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. For instance, we've identified 4 warning signs for ViveRE Communities (2 are potentially serious) you should be aware of.

Of course ViveRE Communities 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, but not derivative transactions.

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