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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 Isodiol International Inc. (CNSX:ISOL).
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 Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
The Last 12 Months Of Insider Transactions At Isodiol International
The , Amirghasem Samimi-Ardestani, made the biggest insider sale in the last 12 months. That single transaction was for CA$4.2m worth of shares at a price of CA$15.67 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$1.00. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 500k shares worth CA$675k. But they sold 557k for CA$4.8m. In total, Isodiol International insiders sold more than they bought 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Isodiol International Insiders Bought Stock Recently
Over the last quarter, Isodiol International insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$675k worth of shares. That shows some optimism about the company's future.
Insider Ownership of Isodiol International
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 25% of Isodiol International shares, worth about CA$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Isodiol International Insider Transactions Indicate?
The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Isodiol International insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. Along with insider transactions, I recommend checking if Isodiol International is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
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