Bullish Clip Money Insiders Loaded Up On US$2.97m Of Stock
In the last year, multiple insiders have substantially increased their holdings of Clip Money Inc. (CVE:CLIP) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Clip Money Insider Transactions Over The Last Year
The Independent Director Donald Layden made the biggest insider purchase in the last 12 months. That single transaction was for CA$845k worth of shares at a price of CA$0.19 each. That implies that an insider found the current price of CA$0.20 per share to be enticing. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Clip Money share holders is that insiders were buying at near the current price.
In the last twelve months Clip Money insiders were buying shares, but not selling. You can see the insider transactions (by companies and 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!
Check out our latest analysis for Clip Money
Clip Money is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Clip Money Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Clip Money insiders own 42% of the company, worth about CA$9.4m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Clip Money Insiders?
The fact that there have been no Clip Money insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Clip Money insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clip Money. Every company has risks, and we've spotted 6 warning signs for Clip Money (of which 2 are a bit concerning!) you should know about.
But note: Clip Money may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.