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A number of insiders bought Coveo Solutions Inc. (TSE:CVO) stock last year, which is great news for shareholders

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Coveo Solutions Inc.'s (TSE:CVO) instance, it's good news for shareholders.

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.

View our latest analysis for Coveo Solutions

The Last 12 Months Of Insider Transactions At Coveo Solutions

Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Louis Tetu for CA$253k worth of shares, at about CA$5.05 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$8.68. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 86.57k shares worth CA$553k. On the other hand they divested 1.00k shares, for CA$7.0k. In the last twelve months there was more buying than selling by Coveo Solutions insiders. The average buy price was around CA$6.39. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

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Coveo Solutions is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are Coveo Solutions Insiders Buying Or Selling?

The last three months saw some Coveo Solutions insider selling. insider Claude-Antoine Tremblay only netted CA$7.0k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership Of Coveo Solutions

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Coveo Solutions insiders own 4.2% of the company, worth about CA$38m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Coveo Solutions Tell Us?

While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Coveo Solutions and their transactions don't cause us concern. While we like knowing 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. Every company has risks, and we've spotted 1 warning sign for Coveo Solutions you should know about.

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, but not derivative transactions.

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

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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