Have Insiders Been Buying Snipp Interactive Inc. (CVE:SPN) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Snipp Interactive Inc. (CVE:SPN), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
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. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for Snipp Interactive
The Last 12 Months Of Insider Transactions At Snipp Interactive
Jaisun Garcha made the biggest insider purchase in the last 12 months. That single transaction was for CA$80k worth of shares at a price of CA$0.10 each. So it’s clear an insider wanted to buy, even at a higher price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. That purchase may suggest an expectation of positive returns over the long term.
In the last twelve months insiders paid CA$96k for 1.01m shares purchased. In the last twelve months there was more buying than selling by Snipp Interactive insiders. The average buy price was around CA$0.095. These transactions suggest that insiders have considered the current price of CA$0.07 attractive. You can see a visual depiction of insider transactions (by 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!
Snipp Interactive is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Snipp Interactive Insiders Buying Or Selling?
We’ve only seen a tiny insider purchase valued at US$6.0k, in the last three months. Looking at the net result, we don’t think these recent trades shed much light on how insiders, as a group, are feeling about the company’s prospects.
Insider Ownership of Snipp Interactive
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Snipp Interactive insiders own about CA$1.9m worth of shares (which is 12% of the company). However, it’s possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Snipp Interactive Tell Us?
Insider purchases have outweighed sales, in the last three months. But the difference isn’t much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it’d be more encouraging if Snipp Interactive insiders bought more shares in the company. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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.
