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Insiders who bought CA$418.5k worth of Vertiqal Studios Corp.'s (TSE:VRTS) stock at an average buy price of CA$0.024 over the last year may be disappointed by the recent 33% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CA$342.3k, which is not what they expected.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Vertiqal Studios
Vertiqal Studios Insider Transactions Over The Last Year
Notably, that recent purchase by insider Max Desmarais was not the only time they bought Vertiqal Studios shares this year. They previously made an even bigger purchase of CA$340k worth of shares at a price of CA$0.025 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.02). 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 Vertiqal Studios insiders bought shares during the last year, they didn't sell. 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).
Vertiqal Studios Insiders Bought Stock Recently
There was some insider buying at Vertiqal Studios over the last quarter. Insiders purchased CA$59k worth of shares in that period. 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 37% of Vertiqal Studios shares, worth about CA$4.7m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.