Insider Spends CA$140k Buying More Shares In Sparc Al

Investors who take an interest in Sparc Al Inc (CSE:SPAI) should definitely note that the Independent Non-Executive Director, Anthony Haberfield, recently paid CA$0.70 per share to buy CA$140k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 29%.

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The Last 12 Months Of Insider Transactions At Sparc Al

The CEO & Non-Executive Chairman Anoosh Manzoori made the biggest insider purchase in the last 12 months. That single transaction was for CA$170k worth of shares at a price of CA$0.20 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.63. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid CA$651k for 2.85m shares. But insiders sold 735.45k shares worth CA$147k. Overall, Sparc Al insiders were net buyers during the last year. The average buy price was around CA$0.23. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Sparc Al

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

Does Sparc Al 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Sparc Al insiders own 41% of the company, worth about CA$4.7m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Sparc Al Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Sparc Al insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 4 warning signs for Sparc Al and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.