With InsuraGuest Technologies Up 29%, Insider Buyers Count Their Returns

Last week, InsuraGuest Technologies Inc. (CVE:ISGI) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 29% last week, resulting in a CA$1.7m increase in the company's market worth, implying a 234% gain on their initial purchase. As a result, their original purchase of US$699.3k worth of stock is now worth US$2.34m.

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.

Check out our latest analysis for InsuraGuest Technologies

The Last 12 Months Of Insider Transactions At InsuraGuest Technologies

In the last twelve months, the biggest single purchase by an insider was when CEO & Chairman Douglas Anderson bought CA$136k worth of shares at a price of CA$0.015 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.045. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid CA$699k for 51.91m shares. But insiders sold 6.50m shares worth CA$65k. In the last twelve months there was more buying than selling by InsuraGuest Technologies insiders. Their average price was about CA$0.013. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 InsuraGuest Technologies

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. We usually like to see fairly high levels of insider ownership. InsuraGuest Technologies insiders own 43% of the company, currently worth about CA$2.9m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The InsuraGuest Technologies Insider Transactions Indicate?

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. With high insider ownership and encouraging transactions, it seems like InsuraGuest Technologies insiders think the business has merit. 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. To help with this, we've discovered 4 warning signs (3 are potentially serious!) that you ought to be aware of before buying any shares in InsuraGuest Technologies.

Of course InsuraGuest 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.