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Those following along with Avante Corp. (CVE:XX) will no doubt be intrigued by the recent purchase of shares by Emmanuel Mounouchos, Founder of the company, who spent a stonking CA$1.1m on stock at an average price of CA$0.82. That purchase boosted their holding by 53%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
View our latest analysis for Avante
The Last 12 Months Of Insider Transactions At Avante
Notably, that recent purchase by Emmanuel Mounouchos is the biggest insider purchase of Avante shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.68). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 3.47m shares worth CA$2.8m. But they sold 68.46k shares for CA$53k. In the last twelve months there was more buying than selling by Avante insiders. 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!
Avante is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Avante insiders own about CA$6.8m worth of shares. That equates to 35% 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.
So What Does This Data Suggest About Avante Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Avante insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Avante. Case in point: We've spotted 3 warning signs for Avante you should be aware of, and 1 of these is significant.