Investor optimism in the cannabis sector is waning with several of the biggest names declining more than 50 per cent since the spring. The retreat has presented a buying opportunity for company insiders to snap up battered shares.
Beacon Securities highlighted a list of five recent transactions that underscore management’s enduring conviction. The findings were based on data from CanadianInsider.com.
“While many cannabis stocks have struggled of late, we have observed insider buying in several cannabis stocks that merits discussion, particularly given that the transactions are generally not press released by the issuers,” Beacon analyst Doug Cooper wrote in a research note. “We believe this buying bodes well, as it demonstrates insider confidence in their respective business outlooks.”
Executive chairman Boris Jordan purchased 100,000 shares at an average price of $8.21 per share in late September.
Price target: $25 per share
Four directors have purchased, in aggregate, 46,000 shares of CL at an average price of $7.96 per share since Sept. 17. This includes Dominic Sergi, Randy Podolsky, Brian McCormack and John Walter.
Price target: $24 per share
Following purchases by other members of management, the company’s COO (Leo Gontmakher) purchased an aggregate of 264,200 shares at an average price of $0.75 per share in the latter half of September.
Price target: $5.50 per share
Following sales by several insiders in mid-September, CEO Kim Rivers purchased 31,000 shares at an average price of $10.81 per share in late September.
Price target: $36
The company’s CFO, Paolo De Luca, purchased 6,495 shares at an average price of $4.68 per share late last week. This follows purchases by two directors (Sherry Porter and Derrick West) of an aggregate of 4,450 shares at an average price of $5.69 per share during September.
Price target: $15 per share