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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Clip Money Inc. (CVE:CLIP), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Clip Money
Clip Money Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Daren Trousdell, sold CA$539k worth of shares at a price of CA$0.18 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$0.22. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 22% of Daren Trousdell's holding. The only individual insider seller over the last year was Daren Trousdell.
Over the last year, we can see that insiders have bought 4.85m shares worth CA$924k. But they sold 2.98m shares for CA$539k. In total, Clip Money insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insiders At Clip Money Have Bought Stock Recently
Over the last quarter, Clip Money insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$501k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Clip Money Boast High 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. Insiders own 33% of Clip Money shares, worth about CA$7.6m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Clip Money Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Clip Money we think they are probably pretty confident of a bright future. While it's good to be aware of 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. For instance, we've identified 6 warning signs for Clip Money (3 are a bit concerning) you should be aware of.