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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 Crown Capital Partners Inc. (TSE:CRWN), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Crown Capital Partners
The Last 12 Months Of Insider Transactions At Crown Capital Partners
The Independent Director Charles Frischer made the biggest insider purchase in the last 12 months. That single transaction was for CA$119k worth of shares at a price of CA$8.00 each. That means that even when the share price was higher than CA$4.00 (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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 49.10k shares worth CA$337k. On the other hand they divested 1.00k shares, for CA$5.0k. In the last twelve months there was more buying than selling by Crown Capital Partners insiders. Their average price was about CA$6.87. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Crown Capital Partners Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Crown Capital Partners. Independent Director John Brussa bought CA$20k worth in that time. However, insider Michael Lee-Chin netted CA$5.0k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
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. Crown Capital Partners insiders own about CA$9.8m worth of shares (which is 44% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.