Yahoo Finance Did Neovasc Inc. (TSE:NVCN) Insiders Buy Up More Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Neovasc Inc. (TSE:NVCN).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Neovasc
Neovasc Insider Transactions Over The Last Year
While no particular insider transaction stood out, we can still look at the overall trading.
Neovasc insiders may have bought shares in the last year, but they didn't sell any. 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!
Neovasc is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Neovasc Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our information indicates that Neovasc insiders own about CA$509k worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. This level of insider ownership is notably low, and not very encouraging.
What Might The Insider Transactions At Neovasc Tell Us?
It doesn't really mean much that no insider has traded Neovasc shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Neovasc insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Neovasc. Every company has risks, and we've spotted 5 warning signs for Neovasc (of which 1 makes us a bit uncomfortable!) you should know about.
But note: Neovasc 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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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