We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Inner Spirit Holdings Ltd. (CNSX:ISH).
What Is Insider Buying?
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 it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At Inner Spirit Holdings
In the last twelve months, the biggest single sale by an insider was when the CFO & Director, Christopher Gulka, sold CA$90k worth of shares at a price of CA$0.24 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.18. So it is hard to draw any strong conclusion from it.
We note that in the last year insiders divested 1.4m shares for a total of CA$267k. In the last year Inner Spirit Holdings insiders didn’t buy any company stock. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Insider Ownership of Inner Spirit Holdings
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. From our data, it seems that Inner Spirit Holdings insiders own 8.2% of the company, worth about CA$3.1m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Inner Spirit Holdings Tell Us?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. Our analysis of Inner Spirit Holdings insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Along with insider transactions, I recommend checking if Inner Spirit Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Inner Spirit Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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If you spot an error that warrants correction, please contact the editor at email@example.com. 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.