Insiders' CA$1.83m Investments In Red Following Alithya Group's CA$30m Dip In Market Value

Insiders who acquired CA$1.83m worth of Alithya Group Inc.'s (TSE:ALYA) stock at an average price of CA$2.94 in the past 12 months may be dismayed by the recent 14% price decline. 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$1.17m which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Alithya Group

The Last 12 Months Of Insider Transactions At Alithya Group

Over the last year, we can see that the biggest insider purchase was by Senior Vice President of Data Solutions Amar Bukkasagaram for CA$1.8m worth of shares, at about CA$2.94 per share. That means that even when the share price was higher than CA$1.88 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Amar Bukkasagaram.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 undervalued small cap companies that insiders are buying.

Insider Ownership Of Alithya Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Alithya Group insiders own 18% of the company, worth about CA$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Alithya Group Tell Us?

It doesn't really mean much that no insider has traded Alithya Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Alithya Group and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Alithya Group, you should check out this free report on analyst forecasts for the company.

But note: Alithya 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.