Cascadia Blockchain Group Slides As Insider Purchases Lose Another CA$217k

Insiders who bought CA$650.0k worth of Cascadia Blockchain Group Corp.'s (CSE:CK) stock at an average buy price of CA$0.03 over the last year may be disappointed by the recent 20% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$433.3k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Cascadia Blockchain Group

The Last 12 Months Of Insider Transactions At Cascadia Blockchain Group

Over the last year, we can see that the biggest insider purchase was by Chairman Di Deng for CA$650k worth of shares, at about CA$0.03 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.02). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Di Deng was the only individual insider to buy during the last year.

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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Cascadia Blockchain Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Cascadia Blockchain Group insiders own 63% of the company, worth about CA$1.2m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Cascadia Blockchain Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Cascadia Blockchain Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Cascadia Blockchain Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Cascadia Blockchain Group is showing 4 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

But note: Cascadia Blockchain Group 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 of direct interests only, but not derivative transactions or indirect interests.

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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.