WildBrain's Market Cap Up CA$53m Following Year Of Insider Stock Buying
Insiders who bought WildBrain Ltd. (TSE:WILD) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$53m as a result of the stock's 17% gain over the same period. As a result, their original purchase of CA$248.8k worth of stock is now worth CA$318.8k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
WildBrain Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Josh Scherba bought CA$137k worth of shares at a price of CA$1.36 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$1.70. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months WildBrain 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for WildBrain
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At WildBrain Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at WildBrain. Specifically, Chief Financial Officer Nicholas Gawne bought CA$112k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership
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. We usually like to see fairly high levels of insider ownership. Our data suggests WildBrain insiders own 1.9% of the company, worth about CA$6.9m. We consider this fairly low insider ownership.
What Might The Insider Transactions At WildBrain Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that WildBrain insiders are expecting a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - WildBrain has 1 warning sign we think you should be aware of.
But note: WildBrain 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.