Pleasing Signs As A Number Of Insiders Buy Geekco Technologies Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Geekco Technologies Corporation's (CVE:GKO) instance, it's good news for shareholders.

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.

Check out our latest analysis for Geekco Technologies

The Last 12 Months Of Insider Transactions At Geekco Technologies

The Co-Founder Henry Harland made the biggest insider purchase in the last 12 months. That single transaction was for CA$75k worth of shares at a price of CA$0.081 each. That means that an insider was happy to buy shares at above the current price of CA$0.055. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Geekco Technologies insiders bought shares during the last year, they didn't sell. Their average price was about CA$0.06. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Geekco Technologies insiders own about CA$1.8m worth of shares. That equates to 35% 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.

What Might The Insider Transactions At Geekco Technologies Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Geekco Technologies and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Geekco Technologies. At Simply Wall St, we've found that Geekco Technologies has 5 warning signs (4 are potentially serious!) that deserve your attention before going any further with your analysis.

Of course Geekco Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.