Have Insiders Been Selling INSCAPE Corporation (TSE:INQ) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell INSCAPE Corporation (TSE:INQ), 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 equally, we would consider it foolish to ignore insider transactions altogether. 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.’
Check out our latest analysis for INSCAPE
The Last 12 Months Of Insider Transactions At INSCAPE
Madan Bhayana made the biggest insider sale in the last 12 months. That single transaction was for CA$237k worth of shares at a price of CA$3.07 each. That is hardly a positive sign, even though it took place above the latest price (CA$1.42). So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders purchased 54.10k shares for CA$110k. But they sold 88.90k for CA$259k. All up, insiders sold more shares in INSCAPE than they bought, over the last year. The sellers received a price of around CA$2.91, on average. Insider selling doesn’t make us excited to buy. However, we do note that the average sale price was significantly higher than the current share price (which is CA$1.42). You can see the insider transactions over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Are INSCAPE Insiders Buying Or Selling?
There was some insider buying at INSCAPE over the last quarter. Independent Director Tania Bortolotto bought CA$8.5k worth of shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that INSCAPE insiders own 59% of the company, worth about CA$12m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At INSCAPE Tell Us?
Insider purchases have outweighed sales, in the last three months. But overall the difference isn’t worth writing home about. While we gain confidence from high insider ownership of INSCAPE, we can’t say the same about their transactions in the last year, in the absence of further purchases. 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 .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
