Alliance Growers Corp. (CNSX:ACG) Insiders Increased Their Holdings

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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Alliance Growers Corp. (CNSX:ACG).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Alliance Growers

The Last 12 Months Of Insider Transactions At Alliance Growers

Director Ian Lambert made the biggest insider purchase in the last 12 months. That single transaction was for CA$85k worth of shares at a price of CA$0.20 each. That means that even when the share price was higher than CA$0.055 (the recent price), an insider wanted to purchase shares. 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. The only individual insider to buy over the last year was Ian Lambert. Notably Ian Lambert was also the biggest seller, having sold CA$110k worth of shares.

Ian Lambert bought a total of 1.2m shares over the year at an average price of CA$0.12. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Alliance Growers Have Sold Stock Recently

We have seen a bit of insider selling at Alliance Growers, over the last three months. The selling netted CA$17k for Ian Lambert. But at least we saw CA$3.0k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Does Alliance Growers Boast High Insider Ownership?

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. Based on our data, Alliance Growers insiders have about 3.5% of the stock, worth approximately CA$163k. We prefer to see high levels of insider ownership.