Investors who take an interest in DIAGNOS Inc. (CVE:ADK) should definitely note that insider Tristram Coffin recently paid CA$0.18 per share to buy CA$141k worth of the stock. That’s a very solid buy in our book, and increased their holding by a noteworthy 16%.
DIAGNOS Insider Transactions Over The Last Year
In fact, the recent purchase by Tristram Coffin was the biggest purchase of DIAGNOS shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.23. 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.
In the last twelve months DIAGNOS insiders were buying shares, but not selling. You can see the insider transactions (by 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!
DIAGNOS 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 DIAGNOS
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. Our data indicates that DIAGNOS insiders own about CA$1.7m worth of shares (which is 12% of the company). However, it’s possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
So What Do The DIAGNOS Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that DIAGNOS insiders are reasonably well aligned, and optimistic for the future. 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. Be aware that DIAGNOS is showing 7 warning signs in our investment analysis, and 4 of those shouldn’t be ignored…
But note: DIAGNOS 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.
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.
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