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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Elixxer Ltd. (CVE:ELXR).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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'.
Elixxer Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman & Interim CEO Ferras Zalt bought CA$111k worth of shares at a price of CA$0.01 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.015. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 16.71m shares for CA$198k. But they sold 1.00m shares for CA$20k. In total, Elixxer insiders bought more than they sold over the last year. They paid about CA$0.012 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Elixxer is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Elixxer Insiders Traded Recently?
In the last three months, insider Mazen Haddad sold CA$5.0k worth of shares. That's not much at all. Ultimately the overall selling isn't enough to tell us much.
Does Elixxer Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.8% of Elixxer shares, worth about CA$1.3m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Elixxer Tell Us?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Elixxer stock. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Elixxer has 6 warning signs (4 are a bit unpleasant!) that deserve your attention before going any further with your analysis.
But note: Elixxer 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.
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