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Executive Chairman of the Board Ian Delaney Just Bought 2.2% More Shares In The Westaim Corporation (CVE:WED)

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Simply Wall St
·3 min read
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Potential The Westaim Corporation (CVE:WED) shareholders may wish to note that the Executive Chairman of the Board, Ian Delaney, recently bought CA$437k worth of stock, paying CA$2.65 for each share. Although the purchase only increased their holding by 2.2%, it is still a solid purchase in our view.

See our latest analysis for Westaim

The Last 12 Months Of Insider Transactions At Westaim

In the last twelve months, the biggest single purchase by an insider was when insider James Hays bought CA$5.1m worth of shares at a price of CA$1.68 per share. We do like to see buying, but this purchase was made at well below the current price of CA$2.66. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 9.07m shares for CA$17m. But they sold 55.00k shares for CA$91k. In the last twelve months there was more buying than selling by Westaim insiders. They paid about CA$1.91 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

insider-trading-volume
insider-trading-volume

Westaim is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Westaim

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 16% of Westaim shares, worth about CA$60m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Westaim Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Westaim we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Westaim you should be aware of.

But note: Westaim may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.