Volatus Capital's CA$220k Market Cap Fall Books Insider Losses
Insiders who acquired CA$210.5k worth of Volatus Capital Corp.'s (CSE:VC.X) stock at an average price of CA$0.075 in the past 12 months may be dismayed by the recent 50% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CA$14.0k, which is not great.
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.
Volatus Capital Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Emma Fairhurst bought CA$211k worth of shares at a price of CA$0.075 per share. That means that an insider was happy to buy shares at above the current price of CA$0.005. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Emma Fairhurst was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Volatus Capital
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.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Volatus Capital insiders own about CA$34k worth of shares (which is 7.8% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Volatus Capital Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Volatus Capital shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Volatus Capital stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Volatus Capital. When we did our research, we found 7 warning signs for Volatus Capital (6 are a bit concerning!) that we believe deserve your full attention.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.