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It is not uncommon to see companies perform well
in the years after insiders buy shares. On the other hand, we'd be
remiss not to mention that insider sales have been known to precede
tough periods for a business. So shareholders might well want to
know whether insiders have been buying or selling shares in
Isodiol International Inc. (CNSX:ISOL).
Most investors know that it is quite permissible
for company leaders, such as directors of the board, to buy and
sell stock on the market. However, rules govern insider
transactions, and certain disclosures are required.
We would never suggest that investors should base
their decisions solely on what the directors of a company have been
doing. But it is perfectly logical to keep tabs on what insiders
are doing. 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 Isodiol International
The , Amirghasem Samimi-Ardestani, made the
biggest insider sale in the last 12 months. That single transaction
was for CA$4.2m worth of shares at a price of CA$15.67 each. We
generally don't like to see insider selling, but the lower the sale
price, the more it concerns us. It's of some comfort that this sale
was conducted at a price well above the current share price, which
is CA$1.00. So it may not tell us anything about how insiders feel
about the current share price.
Over the last year, we can see that insiders have
bought 500k shares worth CA$675k. But they sold 557k for CA$4.8m.
In total, Isodiol International insiders sold more than they bought
over the last year. You can see the insider transactions (by
individuals) over the last year depicted in the chart below. If you
click on the chart, you can see all the individual transactions,
including the share price, individual, and the date!
For those who like to find winning
investments this free list of growing companies
with recent insider purchasing, could be just the ticket.
Over the last quarter, Isodiol International
insiders have spent a meaningful amount on shares. Not only was
there no selling that we can see, but they collectively bought
CA$675k worth of shares. That shows some optimism about the
I like to look at how many shares insiders own in
a company, to help inform my view of how aligned they are with
insiders. I reckon it's a good sign if insiders own a significant
number of shares in the company. Insiders own 25% of Isodiol
International shares, worth about CA$12m. This level of insider
ownership is good but just short of being particularly stand-out.
It certainly does suggest a reasonable degree of alignment.
The recent insider purchases are heartening. But
we can't say the same for the transactions over the last 12 months.
We don't take much heart from transactions by Isodiol International
insiders over the last year. But they own a reasonable amount of
the company, and there was some buying recently. In short they are
likely aligned with shareholders. Along with insider transactions,
I recommend checking if Isodiol International is growing revenue.
This free chart of historic revenue and
earnings should make that easy.
Of course, you might find a fantastic
investment by looking elsewhere. So take a peek at this
free list of interesting
For the purposes of this article, insiders
are those individuals who report their transactions to the relevant
We aim to bring you long-term focused research
analysis driven by fundamental data. Note that our analysis may not
factor in the latest price-sensitive company announcements or
If you spot an error that warrants correction, please contact
the editor at
[email protected] This article by Simply Wall St
is general in nature. It does not constitute a recommendation to
buy or sell any stock, and does not take account of your
objectives, or your financial situation. Simply Wall St has no
position in the stocks mentioned. Thank you for reading.