Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Dundee Precious Metals Inc. (TSE:DPM), it sends a favourable message to the company’s shareholders.
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.
View our latest analysis for Dundee Precious Metals
The Last 12 Months Of Insider Transactions At Dundee Precious Metals
Over the last year, we can see that the biggest insider purchase was by President David Rae for CA$251k worth of shares, at about CA$10.02 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$8.37). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that David Rae was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 75.00k shares for CA$709k. On the other hand they divested 45.30k shares, for CA$412k. In total, Dundee Precious Metals insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Dundee Precious Metals Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$1.6m worth of Dundee Precious Metals stock, about 0.1% of the company. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Dundee Precious Metals Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. On a brighter note, the transactions over the last year are encouraging. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Dundee Precious Metals insiders are doubting the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Dundee Precious Metals. For example, Dundee Precious Metals has 2 warning signs (and 1 which doesn’t sit too well with us) we think you should know about.
Of course Dundee Precious Metals 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.