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Independent Chairman of the Board Terence Matthews Just Bought 9.5% More Shares In CounterPath Corporation (TSE:PATH)

Potential CounterPath Corporation (TSE:PATH) shareholders may wish to note that the Independent Chairman of the Board, Terence Matthews, recently bought CA$670k worth of stock, paying CA$4.70 for each share. Although the purchase only increased their holding by 9.5%, it is still a solid purchase in our view.

View our latest analysis for CounterPath

The Last 12 Months Of Insider Transactions At CounterPath

Notably, that recent purchase by Terence Matthews is the biggest insider purchase of CounterPath shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$5.51. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the CounterPath insider decided to buy shares at close to current prices. Terence Matthews was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

TSX:PATH Recent Insider Trading June 18th 2020
TSX:PATH Recent Insider Trading June 18th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does CounterPath Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CounterPath insiders own about CA$11m worth of shares. That equates to 31% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At CounterPath Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest CounterPath insiders are well aligned, and that they may think the share price is too low. 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. To that end, you should learn about the 4 warning signs we've spotted with CounterPath (including 1 which shouldn't be ignored).

Of course CounterPath may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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. Thank you for reading.

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