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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Black Swan Graphene Inc. (CVE:SWAN), it sends a favourable message to the company's shareholders.
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.
View our latest analysis for Black Swan Graphene
Black Swan Graphene Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Vice President of Corporate Development Paul Hardy for CA$70k worth of shares, at about CA$0.07 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.13), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Black Swan Graphene insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.078. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Black Swan Graphene 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.
Black Swan Graphene Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Black Swan Graphene. Independent Chairman of the Board Harry Swan shelled out CA$25k for shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own CA$1.1m worth of Black Swan Graphene stock, about 2.9% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.