HYLQ Strategy's Recent Gains Improve Losses On Insider Purchases Worth CA$2.42m

Some of the losses seen by insiders who purchased CA$2.42m worth of HYLQ Strategy Corp. (CSE:HYLQ) shares over the past year were recovered after the stock increased by 19% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CA$466k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At HYLQ Strategy

In the last twelve months, the biggest single purchase by an insider was when insider Antanas Guoga bought CA$1.9m worth of shares at a price of CA$1.50 per share. That means that even when the share price was higher than CA$1.25 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Antanas Guoga was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid CA$2.4m for 1.56m shares. But insiders sold 366.20k shares worth CA$1.1m. Overall, HYLQ Strategy insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for HYLQ Strategy

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

HYLQ Strategy Insiders Bought Stock Recently

There was some insider buying at HYLQ Strategy over the last quarter. insider Antanas Guoga bought CA$24k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership Of HYLQ Strategy

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that HYLQ Strategy insiders own 27% of the company, worth about CA$5.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At HYLQ Strategy Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in HYLQ Strategy 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 HYLQ Strategy. Be aware that HYLQ Strategy is showing 6 warning signs in our investment analysis, and 4 of those make us uncomfortable...

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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.