Insiders at Bitcoin Well Inc. (CVE:BTCW) recouped some losses this week after buying this year, still down CA$29k

Insiders who bought CA$103k worth of Bitcoin Well Inc. (CVE:BTCW) stock in the last year recovered part of their losses as the stock rose by 13% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$29k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Bitcoin Well

The Last 12 Months Of Insider Transactions At Bitcoin Well

Notably, that recent purchase by Terry Rhode is the biggest insider purchase of Bitcoin Well shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$0.045. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Bitcoin Well insiders were buying shares, but not selling. 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 growing companies that insiders are buying.

Bitcoin Well Insiders Bought Stock Recently

It's good to see that Bitcoin Well insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$83k worth of shares. This could be interpreted as suggesting a positive outlook.

Does Bitcoin Well 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Bitcoin Well insiders own 63% of the company, currently worth about CA$5.0m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Bitcoin Well Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Bitcoin Well. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 4 warning signs with Bitcoin Well and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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, but not derivative transactions.

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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.