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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Innovotech Inc. (CVE:IOT), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Innovotech
The Last 12 Months Of Insider Transactions At Innovotech
The Independent Director Shong-Tak Tam made the biggest insider purchase in the last 12 months. That single transaction was for CA$153k worth of shares at a price of CA$0.13 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.19. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 3.45m shares worth CA$443k. But insiders sold 62.50k shares worth CA$11k. In the last twelve months there was more buying than selling by Innovotech insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Innovotech Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Innovotech, over the last three months. In total, Independent Director Shong-Tak Tam bought CA$153k worth of shares in that time. But we did see Chairman & Secretary James Timourian sell shares worth CA$11k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership Of Innovotech
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Innovotech insiders own 41% of the company, currently worth about CA$3.7m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Innovotech Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Innovotech. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Innovotech. To that end, you should learn about the 4 warning signs we've spotted with Innovotech (including 2 which can't be ignored).