Stock Analysis

Having purchased CA$1.1m worth of Mobi724 Global Solutions Inc. (CVE:MOS) stock, the recent 33% pullback is not what insiders may have expected

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Insiders who bought CA$1.1m worth of Mobi724 Global Solutions Inc.'s (CVE:MOS) stock at an average buy price of CA$0.025 over the last year may be disappointed by the recent 33% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$429k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Mobi724 Global Solutions

Mobi724 Global Solutions Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Bernard Pouliot bought CA$500k worth of shares at a price of CA$0.025 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.01). 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Mobi724 Global Solutions insiders may have bought shares in the last year, but they didn't sell any. 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!

TSXV:MOS Insider Trading Volume March 15th 2023

Mobi724 Global Solutions is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Mobi724 Global Solutions Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Mobi724 Global Solutions. In total, insiders bought CA$1.1m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Does Mobi724 Global Solutions Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mobi724 Global Solutions insiders own about CA$1.8m worth of shares. That equates to 36% 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 Mobi724 Global Solutions Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Mobi724 Global Solutions we think they are probably pretty confident of a bright 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. Our analysis shows 5 warning signs for Mobi724 Global Solutions (4 are a bit concerning!) and we strongly recommend you look at these before investing.

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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Mobi724 Global Solutions

Mobi724 Global Solutions Inc., a fintech company, offers a suite of integrated data-driven business intelligence and artificial intelligence powered card-linked offers and reward solutions in North America and Latin America.

Slightly overvalued with imperfect balance sheet.

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