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Insider Buying: The Spot Coffee (Canada) Ltd. (CVE:SPP) Executive Chairman Just Bought CA$51k Worth Of Shares

Simply Wall St

Even if it's not a huge purchase, we think it was good to see that John Lorenzo, the Executive Chairman of Spot Coffee (Canada) Ltd. (CVE:SPP) recently shelled out CA$51k to buy stock, at CA$0.85 per share. That might not be a big purchase but it only increased their holding by 0.6%, and could be interpreted as a good sign.

View our latest analysis for Spot Coffee (Canada)

Spot Coffee (Canada) Insider Transactions Over The Last Year

In fact, the recent purchase by John Lorenzo was the biggest purchase of Spot Coffee (Canada) shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.10). 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.

While Spot Coffee (Canada) insiders bought shares last year, they didn't sell. They paid about CA$0.13 on average. I'd consider this a positive as it suggests insiders see value at around the current price, which is CA$0.10. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

TSXV:SPP Recent Insider Trading, November 10th 2019

Spot Coffee (Canada) is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Spot Coffee (Canada) 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. Spot Coffee (Canada) insiders own about CA$3.0m worth of shares. That equates to 22% 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 Does This Data Suggest About Spot Coffee (Canada) Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Insiders likely see value in Spot Coffee (Canada) shares, given these transactions (along with notable insider ownership of the company). I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course Spot Coffee (Canada) 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.