Recap on Insider activities hope all is well Third Leg and may Trevor Dixon regain his full health soon...
Invictus MD Strategies Corp. (CVE:GENE) Insiders Increased Their Holdings
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Invictus MD Strategies Corp. (CVE:GENE).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
Check out our latest analysis for Invictus MD Strategies
The Last 12 Months Of Insider Transactions At Invictus MD Strategies
In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Trevor Dixon bought CA$500k worth of shares at a price of CA$0.40 per share. That means that an insider was happy to buy shares at above the current price of CA$0.18. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$718k for 1440900 shares. But they sold 10000 for CA$12k. In the last twelve months there was more buying than selling by Invictus MD Strategies insiders. Their average price was about CA$0.50. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date
Have Invictus MD Strategies Insiders Traded Recently?
We saw some Invictus MD Strategies insider buying shares in the last three months. Independent Director Colin Kinsley purchased CA$11k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership of Invictus MD Strategies
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Invictus MD Strategies insiders own about CA$4.4m worth of shares. That equates to 19% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Invictus MD Strategies Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Invictus MD Strategies and their transactions don't cause us concern.
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