Whilst it may not be a huge deal, we thought it was good to see that the RediShred Capital Corp. (CVE:KUT) Independent Director, Phillip Gaunce, recently bought CA$60k worth of stock, for CA$0.39 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 11%.
The Last 12 Months Of Insider Transactions At RediShred Capital
In the last twelve months, the biggest single purchase by an insider was when Independent Director James Lawley bought CA$100k worth of shares at a price of CA$0.95 per share. That means that an insider was happy to buy shares at above the current price of CA$0.40. 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.
RediShred Capital insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around CA$0.66. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 RediShred Capital Boast High Insider Ownership?
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. RediShred Capital insiders own about CA$10m worth of shares. That equates to 33% of the company. 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 RediShred Capital Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of RediShred Capital we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RediShred Capital. Our analysis shows 4 warning signs for RediShred Capital (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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.
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