Potential Black Diamond Group Limited (TSE:BDI) shareholders may wish to note that the Independent Director, Edward Kernaghan, recently bought CA$195k worth of stock, paying CA$1.70 for each share. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.7%.
Black Diamond Group Insider Transactions Over The Last Year
In fact, the recent sale by Independent Director Edward Kernaghan was not their only sale of Black Diamond Group shares this year. Earlier in the year, they fetched CA$2.37 per share in a -CA$237.0k sale. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$1.75. So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid CA$398k for 213k shares. But they sold 105k for CA$248k. In total, Black Diamond Group insiders bought more than they sold over the last year. 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!
Does Black Diamond Group Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Black Diamond Group insiders own 17% of the company, worth about CA$16m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Black Diamond Group Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Black Diamond Group insiders are well aligned, and that they may think the share price is too low. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Black Diamond Group.
Of course Black Diamond Group 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, but not derivative transactions.
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