Greenway Greenhouse Cannabis Up 14%, Insiders Still Down After CA$10.00m Purchase
Insiders who bought CA$10.00m worth of Greenway Greenhouse Cannabis Corporation (CSE:GWAY) stock in the last year have seen some of their losses recouped as the stock gained 14% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$2.0m.
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.
The Last 12 Months Of Insider Transactions At Greenway Greenhouse Cannabis
In the last twelve months, the biggest single purchase by an insider was when Independent Director Martin Komsa bought CA$5.0m worth of shares at a price of CA$0.10 per share. That means that an insider was happy to buy shares at above the current price of CA$0.08. 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 encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Martin Komsa was the only individual insider to buy during the last year.
Martin Komsa bought a total of 100.00m shares over the year at an average price of CA$0.10. 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!
View our latest analysis for Greenway Greenhouse Cannabis
Greenway Greenhouse Cannabis 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 Greenway Greenhouse Cannabis Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Greenway Greenhouse Cannabis insiders own about CA$8.0m worth of shares (which is 75% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Greenway Greenhouse Cannabis Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Greenway Greenhouse Cannabis insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. At Simply Wall St, we found 4 warning signs for Greenway Greenhouse Cannabis that deserve your attention before buying any shares.
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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