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Have Insiders Been Buying Boat Rocker Media Inc. (TSE:BRMI) Shares This Year?

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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 we'll take a look at whether insiders have been buying or selling shares in Boat Rocker Media Inc. (TSE:BRMI).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Boat Rocker Media

Boat Rocker Media Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Robert McLean bought CA$80k worth of shares at a price of CA$9.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$6.98). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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 Boat Rocker Media insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

Boat Rocker Media 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 Boat Rocker Media

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Boat Rocker Media insiders own 18% of the company, worth about CA$71m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Boat Rocker Media Insiders?

It doesn't really mean much that no insider has traded Boat Rocker Media shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Boat Rocker Media and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Boat Rocker Media. In terms of investment risks, we've identified 1 warning sign with Boat Rocker Media and understanding this should be part of your investment process.

Of course Boat Rocker Media 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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