With Sparc Al Up 23%, Insider Buyers Count Their Returns

Sparc Al Inc (CSE:SPAI) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 23% resulting in a CA$2.8m addition to the company’s market value. Put another way, the original CA$510.7k acquisition is now worth CA$1.96m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Sparc Al Insider Transactions Over The Last Year

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. We do like to see buying, but this purchase was made at well below the current price of CA$0.74. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 2.65m shares worth CA$511k. But they sold 735.45k shares for CA$147k. Overall, Sparc Al insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Sparc Al

Sparc Al is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Sparc Al Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Sparc Al. Independent Non-Executive Director Anthony Haberfield bought CA$22k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Sparc Al 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Sparc Al insiders own 41% of the company, worth about CA$5.9m. 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?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Sparc Al insiders think the business has merit. 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. When we did our research, we found 4 warning signs for Sparc Al (3 are potentially serious!) that we believe deserve your full attention.

But note: Sparc Al 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.