EverGen Infrastructure Corp. (CVE:EVGN) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 20% resulting in a CA$2.3m addition to the company’s market value. As a result, their original purchase of CA$313.0k worth of stock is now worth CA$352.1k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At EverGen Infrastructure
In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Director Mischa Zajtmann bought CA$133k worth of shares at a price of CA$0.60 per share. That means that an insider was happy to buy shares at above the current price of CA$0.54. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While EverGen Infrastructure insiders bought shares during the last year, they didn't sell. They paid about CA$0.48 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for EverGen Infrastructure
EverGen Infrastructure is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of EverGen Infrastructure
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that EverGen Infrastructure insiders own 8.0% of the company, worth about CA$1.0m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About EverGen Infrastructure Insiders?
The fact that there have been no EverGen Infrastructure insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think EverGen Infrastructure insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, EverGen Infrastructure has 4 warning signs (and 3 which shouldn't be ignored) we think you should know about.
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.