Yahoo Finance Great news for Rocky Mountain Liquor Inc. (CVE:RUM): Insiders acquired stock in large numbers last year
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Rocky Mountain Liquor Inc.'s (CVE:RUM) case, it's fantastic news for shareholders.
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.
Check out our latest analysis for Rocky Mountain Liquor
Rocky Mountain Liquor Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & President Peter Byrne bought CA$217k worth of shares at a price of CA$0.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.17). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$245k for 1.36m shares. On the other hand they divested 30.37k shares, for CA$5.9k. Overall, Rocky Mountain Liquor insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Rocky Mountain Liquor is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Rocky Mountain Liquor
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. Rocky Mountain Liquor insiders own about CA$2.9m worth of shares. That equates to 36% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Rocky Mountain Liquor Tell Us?
It doesn't really mean much that no insider has traded Rocky Mountain Liquor shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Rocky Mountain Liquor and their transactions don't cause us concern. While we like knowing 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, Rocky Mountain Liquor has 4 warning signs (and 3 which don't sit too well with us) we think you should know about.
Of course Rocky Mountain Liquor may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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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.
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