Who Has Been Buying Cronos Group Inc. (TSE:CRON) Shares?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Cronos Group Inc. (TSE:CRON), you may well want to know whether insiders have been buying or selling.” data-reactid=”19″>We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Cronos Group Inc. (TSE:CRON), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.” data-reactid=”22″>Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" Check out our latest analysis for Cronos Group ” data-reactid=”23″>Check out our latest analysis for Cronos Group

The Last 12 Months Of Insider Transactions At Cronos Group

In the last twelve months, the biggest single purchase by an insider was when Chief Executive Officer of Redwood Wellness Robert Rosenheck bought CA$667k worth of shares at a price of CA$19.52 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$8.77). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 44.19k shares worth CA$819k. But insiders sold 1186 shares worth CA$11k. In the last twelve months there was more buying than selling by Cronos Group insiders. You can see a visual depiction of insider transactions (by 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!

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.” data-reactid=”39″>There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Cronos Group Boast High Insider Ownership?

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. It appears that Cronos Group insiders own 2.7% of the company, worth about CA$82m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Cronos Group Insider Transactions Indicate?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="There haven't been any insider transactions in the last three months — that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Cronos Group insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cronos Group. Be aware that Cronos Group is showing 3 warning signs in our investment analysis, and 1 of those is concerning…” data-reactid=”43″>There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don’t see anything to make us think Cronos Group insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Cronos Group. Be aware that Cronos Group is showing 3 warning signs in our investment analysis, and 1 of those is concerning…

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="But note: Cronos Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.” data-reactid=”44″>But note: Cronos Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.