Have Insiders Been Selling Phivida Holdings Inc. (CNSX:VIDA) Shares?

Simply Wall St - finance.yahoo.com Posted 5 months ago
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Phivida Holdings Inc. (CNSX:VIDA), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'

Check out our latest analysis for Phivida Holdings

Phivida Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Director David Moon for CA$903k worth of shares, at about CA$0.85 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.40). 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid CA$1.1m for 1.4m shares. But insiders sold 2.1m shares worth CA$1.5m. John Belfontaine divested 2.1m shares over the last 12 months at an average price of CA$0.70. 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!

CNSX:VIDA Recent Insider Trading, June 20th 2019
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If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders at Phivida Holdings Have Bought Stock Recently

At Phivida Holdings,over the last quarter, we have observed quite a lot more insider buying than insider selling. David Moon spent CA$993k on stock. But we did see John Belfontaine sell shares worth CA$742k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Does Phivida Holdings 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own CA$1.4m worth of Phivida Holdings stock, about 4.0% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Phivida Holdings Tell Us?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. Along with insider transactions, I recommend checking if Phivida Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.

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 qualitative material.

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.