Beacn Wizardry and Magic Insiders Lose Out As Stock Sinks To CA$0.025

The recent 29% drop in Beacn Wizardry and Magic Inc.’s (CVE:BECN) stock could come as a blow to insiders who purchased CA$112.2k worth of stock at an average buy price of CA$0.19 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CA$14.7k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Beacn Wizardry and Magic

Over the last year, we can see that the biggest insider purchase was by insider David Howard for CA$112k worth of shares, at about CA$0.19 per share. That means that an insider was happy to buy shares at above the current price of CA$0.025. 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. 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.

While Beacn Wizardry and Magic insiders bought shares during the last year, they didn’t sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Beacn Wizardry and Magic

Beacn Wizardry and Magic is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Beacn Wizardry and Magic Have Bought Stock Recently

Over the last quarter, Beacn Wizardry and Magic insiders have spent a meaningful amount on shares. Specifically, insider David Howard bought CA$112k worth of shares in that time, and we didn’t record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Does Beacn Wizardry and Magic Boast High 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Beacn Wizardry and Magic insiders own about CA$1.2m worth of shares (which is 59% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Beacn Wizardry and Magic Insider Transactions Indicate?

It’s certainly positive to see the recent insider purchase. 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 Beacn Wizardry and Magic insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Beacn Wizardry and Magic. Be aware that Beacn Wizardry and Magic is showing 3 warning signs in our investment analysis, and 2 of those make us uncomfortable…

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.