Uniserve Communications Gains 17%, Insider Trades Reap Benefit

Uniserve Communications Corporation (CVE:USS) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 17%, resulting in a CA$4.4m rise in the company's market capitalisation, translating to a gain of 31% on their initial investment. Put another way, the original CA$539.8k acquisition is now worth CA$704.6k.

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.

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The Last 12 Months Of Insider Transactions At Uniserve Communications

Over the last year, we can see that the biggest insider sale was by the Executive Director, Kwin Grauer, for CA$82k worth of shares, at about CA$0.68 per share. That means that an insider was selling shares at slightly below the current price (CA$0.75). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 39% of Kwin Grauer's holding. The only individual insider seller over the last year was Kwin Grauer.

Happily, we note that in the last year insiders paid CA$540k for 939.50k shares. On the other hand they divested 258.77k shares, for CA$163k. In total, Uniserve Communications insiders bought more than they sold over 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!

See our latest analysis for Uniserve Communications

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.

Insiders At Uniserve Communications Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Uniserve Communications. Not only was there no selling that we can see, but they collectively bought CA$162k worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership Of Uniserve Communications

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Uniserve Communications insiders own 60% of the company, currently worth about CA$18m based on the recent share price. 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 Uniserve Communications Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Uniserve Communications. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Uniserve Communications you should be aware of, and 1 of them is concerning.

Of course Uniserve Communications 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 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.