Black Swan Graphene President Acquires 13% More Stock

Investors who take an interest in Black Swan Graphene Inc. (CVE:SWAN) should definitely note that the President, Simon Marcotte, recently paid CA$0.87 per share to buy CA$159k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 13%.

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The Last 12 Months Of Insider Transactions At Black Swan Graphene

Notably, that recent purchase by Simon Marcotte is the biggest insider purchase of Black Swan Graphene shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.82). 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. 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. Simon Marcotte was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Black Swan Graphene

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 13% of Black Swan Graphene shares, worth about CA$6.5m, according to our data. However, it’s possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we’re not overly impressed by these holdings.

So What Does This Data Suggest About Black Swan Graphene Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Black Swan Graphene insiders are expecting a bright future. While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Black Swan Graphene is showing 2 warning signs in our investment analysis, and 1 of those is concerning…

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list 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 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.