Insiders Rewarded With CA$17m Addition To Investment As CyberCatch Holdings Stock Hits CA$79m

Last week, CyberCatch Holdings, Inc. (CVE:CYBE) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 42% last week, resulting in a CA$24m increase in the company's market worth, implying a 1,740% gain on their initial purchase. As a result, their original purchase of CA$980.0k worth of stock is now worth CA$18.0m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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CyberCatch Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Founder Sai Huda for CA$980k worth of shares, at about CA$0.20 per share. We do like to see buying, but this purchase was made at well below the current price of CA$3.68. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for CyberCatch Holdings

CyberCatch Holdings 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 CyberCatch Holdings Have Sold Stock Recently

We have seen a bit of insider selling at CyberCatch Holdings, over the last three months. Founder Sai Huda only netted CA$15k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that CyberCatch Holdings insiders own 28% of the company, worth about CA$22m. 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 CyberCatch Holdings Insiders?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in CyberCatch Holdings and we see no evidence to suggest they are worried about the future. 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 7 warning signs for CyberCatch Holdings (5 can't be ignored!) that we believe deserve your full attention.

But note: CyberCatch Holdings 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.