We often see insiders buying up shares in companies that perform well over the long term. 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 before you buy or sell Mogo Finance Technology Inc. (TSE:MOGO), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Mogo Finance Technology Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Michael Wekerle for CA$319k worth of shares, at about CA$3.19 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$3.74. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. Happily, the Mogo Finance Technology insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 149k shares worth CA$481k. But they sold 10000 for CA$34k. In total, Mogo Finance Technology insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Mogo Finance Technology is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Mogo Finance Technology Have Bought Stock Recently
Over the last quarter, Mogo Finance Technology insiders have spent a meaningful amount on shares. We can see that Michael Wekerle paid CA$319k for shares in the company. No-one sold. This makes one think the business has some good points.
Insider Ownership of Mogo Finance Technology
For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Mogo Finance Technology insiders own 28% of the company, worth about CA$24m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Mogo Finance Technology Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Mogo Finance Technology insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Mogo Finance Technology, you should check out this free report on analyst forecasts for the company.
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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