Are Insiders Buying Cliffside Capital Ltd. (CVE:CEP) Stock?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Cliffside Capital Ltd. (CVE:CEP).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Cliffside Capital
Cliffside Capital Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Director Mark Newman for CA$138k worth of shares, at about CA$0.16 per share. That means that an insider was happy to buy shares at around the current price of CA$0.20. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Cliffside Capital share holders is that insiders were buying at near the current price.
In the last twelve months insiders paid CA$376k for 2.3m shares purchased. Cliffside Capital may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Cliffside Capital is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Cliffside Capital Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Cliffside Capital. Overall, 3 insiders shelled out CA$376k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Cliffside Capital
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Cliffside Capital insiders own 53% of the company, worth about CA$7.9m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Cliffside Capital Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. 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 Cliffside Capital insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
