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The recent price decline of 17% in Beacn Wizardry and Magic Inc.'s (CVE:BECN) stock may have disappointed insiders who bought CA$203.9k worth of shares at an average price of CA$0.20 in the past 12 months. 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$154.6k which is not ideal.
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.
Check out our latest analysis for Beacn Wizardry and Magic
The Last 12 Months Of Insider Transactions At Beacn Wizardry and Magic
Over the last year, we can see that the biggest insider purchase was by insider James Elliott for CA$200k worth of shares, at about CA$0.20 per share. That means that even when the share price was higher than CA$0.15 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
While Beacn Wizardry and Magic insiders bought shares during the last year, they didn't sell. 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!
Beacn Wizardry and Magic 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.
Does Beacn Wizardry and Magic Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Beacn Wizardry and Magic insiders own 53% of the company, worth about CA$4.2m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Beacn Wizardry and Magic Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Beacn Wizardry and Magic insiders think the business has merit. 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. For example, Beacn Wizardry and Magic has 6 warning signs (and 4 which don't sit too well with us) we think you should know about.