Insiders who bought US$125k worth of Resverlogix Corp.'s (TSE:RVX) stock at an average buy price of US$0.25 over the last year may be disappointed by the recent 13% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$83k, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Resverlogix

Resverlogix Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder Donald McCaffrey for CA$93k worth of shares, at about CA$0.25 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). 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 when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Donald McCaffrey was the only individual insider to buy shares in the last twelve months.

Donald McCaffrey bought 500.00k shares over the last 12 months at an average price of CA$0.25. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this freelist of growing companies that insiders are buying.

Insider Ownership Of Resverlogix

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own CA$1.5m worth of Resverlogix stock, about 3.5% of the company. We prefer to see high levels of insider ownership.



What Might The Insider Transactions At Resverlogix Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Resverlogix insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Resverlogix. Be aware that Resverlogix is showing 5 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of interesting companies, that have HIGH return on equity 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.

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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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