It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Queen's Road Capital Investment Ltd.'s (CVE:QRC) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Queen's Road Capital Investment
The insider Jack Cowin made the biggest insider purchase in the last 12 months. That single transaction was for CA$143k worth of shares at a price of CA$0.63 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.76. 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.
Queen's Road Capital Investment insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Queen's Road Capital Investment 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 Queen's Road Capital Investment Have Bought Stock Recently
It's good to see that Queen's Road Capital Investment insiders have made notable investments in the company's shares. Specifically, Chairman & CEO Warren Philip Gilman bought CA$67k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership of Queen's Road Capital Investment
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Queen's Road Capital Investment insiders own 36% of the company, worth about CA$79m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Queen's Road Capital Investment Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Queen's Road Capital Investment shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Queen's Road Capital Investment. To that end, you should learn about the 3 warning signs we've spotted with Queen's Road Capital Investment (including 1 which is concerning).
Of course Queen's Road Capital Investment may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.