Insider Traders Lose US$70k As Coveo Solutions Drops

Insiders who bought US$200.0k worth of Coveo Solutions Inc.'s (TSE:CVO) stock at an average buy price of US$10.40 over the last year may be disappointed by the recent 15% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$130.4k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Coveo Solutions

The Last 12 Months Of Insider Transactions At Coveo Solutions

The Chief Financial Officer Brandon Nussey made the biggest insider purchase in the last 12 months. That single transaction was for CA$200k worth of shares at a price of CA$10.40 each. That means that an insider was happy to buy shares at above the current price of CA$6.78. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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. Brandon Nussey 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. 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 Coveo Solutions

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Coveo Solutions insiders own about CA$28m worth of shares. That equates to 4.0% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Coveo Solutions Insiders?

It doesn't really mean much that no insider has traded Coveo Solutions shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Coveo Solutions insiders are doubting the company, and they do own shares. 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. For example - Coveo Solutions has 1 warning sign we think you should be aware of.

But note: Coveo Solutions 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com