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 IsoEnergy Ltd. (CVE:ISO), 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for IsoEnergy
IsoEnergy Insider Transactions Over The Last Year
The Independent Director Richard Patricio made the biggest insider purchase in the last 12 months. That single transaction was for CA$190k worth of shares at a price of CA$3.79 each. That means that an insider was happy to buy shares at above the current price of CA$2.48. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Richard Patricio was also the biggest seller.
In the last twelve months insiders purchased 115.00k shares for CA$406k. But insiders sold 50.00k shares worth CA$185k. Overall, IsoEnergy insiders were net buyers during 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. 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 what we can see in our data, insiders own only about CA$1.1m worth of IsoEnergy shares. We might be missing something but that seems like very low insider ownership.
What Might The Insider Transactions At IsoEnergy Tell Us?
It doesn't really mean much that no insider has traded IsoEnergy shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if IsoEnergy insiders bought more shares in the company. 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, IsoEnergy has 3 warning signs (and 2 which are concerning) we think you should know about.