Whilst it may not be a huge deal, we thought it was good to see that the RenoWorks Software Inc. (CVE:RW) Independent Director, Robert Schulz, recently bought CA$50k worth of stock, for CA$0.25 per share. However, we do note that it only increased their holding by 4.3%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At RenoWorks Software
In fact, the recent purchase by Independent Director Robert Schulz was not their only acquisition of RenoWorks Software shares this year. Earlier in the year, they paid CA$0.30 per share in a CA$52k purchase. That means that an insider was happy to buy shares at above the current price of CA$0.24. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Robert Schulz was the only individual insider to buy shares in the last twelve months.
Robert Schulz bought a total of 986.00k shares over the year at an average price of CA$0.26. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of RenoWorks Software
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. RenoWorks Software insiders own about CA$3.5m worth of shares (which is 40% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About RenoWorks Software Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about RenoWorks Software. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that RenoWorks Software has 7 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.
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. We currently account for open market transactions and private dispositions, but not derivative transactions.
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