With LQWD Technologies Up 13%, Insider Buyers Count Their Returns

LQWD Technologies Corp. (CVE:LQWD) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a CA$4.8m rise in the company's market capitalisation, translating to a gain of 134% on their initial investment. Put another way, the original CA$705.4k acquisition is now worth CA$1.65m.

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.

View our latest analysis for LQWD Technologies

LQWD Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Alex Guidi for CA$371k worth of shares, at about CA$1.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$1.86. 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$705k for 886.00k shares. But insiders sold 67.10k shares worth CA$157k. In the last twelve months there was more buying than selling by LQWD Technologies insiders. Their average price was about CA$0.80. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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.

LQWD Technologies Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at LQWD Technologies. Insiders spent CA$489k on shares. On the other hand, Independent Director Alex Guidi netted CA$147k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does LQWD Technologies 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 13% of LQWD Technologies shares, worth about CA$5.2m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About LQWD Technologies Insiders?

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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that LQWD Technologies insiders are reasonably well aligned, and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 5 warning signs we've spotted with LQWD Technologies (including 4 which don't sit too well with us).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.