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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Dundee Precious Metals
Dundee Precious Metals Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President David Rae bought CA$251k worth of shares at a price of CA$10.02 per share. That means that even when the share price was higher than CA$9.18 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that David Rae was both the biggest buyer and the biggest seller.
Over the last year, we can see that insiders have bought 51.00k shares worth CA$510k. On the other hand they divested 26.93k shares, for CA$245k. In the last twelve months there was more buying than selling by Dundee Precious Metals insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Dundee Precious Metals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Dundee Precious Metals
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our data suggests Dundee Precious Metals insiders own 0.1% of the company, worth about CA$1.7m. We consider this fairly low insider ownership.
So What Do The Dundee Precious Metals Insider Transactions Indicate?
The fact that there have been no Dundee Precious Metals insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it’d be more encouraging if Dundee Precious Metals insiders bought more shares in the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Dundee Precious Metals. When we did our research, we found 2 warning signs for Dundee Precious Metals (1 is a bit unpleasant!) that we believe deserve your full attention.
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 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.