Yahoo Finance Favourable Signals For TUT Fitness Group: Numerous Insiders Acquired Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in TUT Fitness Group Inc.'s (CVE:GYM) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for TUT Fitness Group
TUT Fitness Group Insider Transactions Over The Last Year
The CEO & Director Robert Smith made the biggest insider purchase in the last 12 months. That single transaction was for CA$140k worth of shares at a price of CA$0.045 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.045). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Robert Smith was also the biggest seller.
In the last twelve months insiders purchased 4.18m shares for CA$189k. But insiders sold 10.00k shares worth CA$400. Overall, TUT Fitness Group insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
TUT Fitness Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
TUT Fitness Group Insiders Bought Stock Recently
It's good to see that TUT Fitness Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$185k worth of shares. This makes one think the business has some good points.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 19% of TUT Fitness Group shares, worth about CA$321k. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At TUT Fitness Group Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest TUT Fitness Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TUT Fitness Group. To help with this, we've discovered 3 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in TUT Fitness Group.
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.
