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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Quipt Home Medical Corp.'s (TSE:QIPT) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
We've discovered 2 warning signs about Quipt Home Medical. View them for free.
Quipt Home Medical Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman Gregory Crawford bought CA$402k worth of shares at a price of CA$3.67 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$2.99). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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.
Quipt Home Medical insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Quipt Home Medical
Quipt Home Medical 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.
Does Quipt Home Medical Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Quipt Home Medical insiders own 11% of the company, worth about CA$13m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Quipt Home Medical Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Quipt Home Medical and their transactions don't cause us concern. 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. While conducting our analysis, we found that Quipt Home Medical has 2 warning signs and it would be unwise to ignore these.