Don't Ignore The Fact That This Insider Just Sold Some Shares In C-Com Satellite Systems Inc. (CVE:CMI)

By
Simply Wall St
Published
July 31, 2021
TSXV:CMI
Source: Shutterstock

We'd be surprised if C-Com Satellite Systems Inc. (CVE:CMI) shareholders haven't noticed that the Chief Technology Officer, Bilal Awada, recently sold CA$186k worth of stock at CA$3.10 per share. On the bright side, that sale was only 9.1% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for C-Com Satellite Systems

The Last 12 Months Of Insider Transactions At C-Com Satellite Systems

Notably, that recent sale by Bilal Awada is the biggest insider sale of C-Com Satellite Systems shares that we've seen in the last year. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$2.81. So it is hard to draw any strong conclusion from it.

In the last year C-Com Satellite Systems insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
TSXV:CMI Insider Trading Volume July 31st 2021

I will like C-Com Satellite Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

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. C-Com Satellite Systems insiders own about CA$46m worth of shares (which is 41% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At C-Com Satellite Systems Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since C-Com Satellite Systems is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing 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. In terms of investment risks, we've identified 6 warning signs with C-Com Satellite Systems and understanding these should be part of your investment process.

Of course C-Com Satellite Systems 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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