Rubicon Organics Inc. (CVE:ROMJ) insiders placed bullish bets worth CA$1.4m in the last 12 months
Quite a few insiders have dramatically grown their holdings in Rubicon Organics Inc. (CVE:ROMJ) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Rubicon Organics
The Last 12 Months Of Insider Transactions At Rubicon Organics
In the last twelve months, the biggest single purchase by an insider was when insider Julie Lassonde bought CA$770k worth of shares at a price of CA$0.77 per share. That means that an insider was happy to buy shares at above the current price of CA$0.73. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 1.82m shares worth CA$1.4m. On the other hand they divested 1.12m shares, for CA$850k. In total, Rubicon Organics insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Rubicon Organics Have Bought Stock Recently
At Rubicon Organics,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, three insiders bought CA$428k worth of shares. But we did see insider Pierre Lassonde sell shares worth CA$80k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership Of Rubicon Organics
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Rubicon Organics insiders own 55% of the company, worth about CA$23m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Rubicon Organics Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Rubicon Organics. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Rubicon Organics has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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