DATA Communications Management Stock Down 13% But Insiders Still In CA$32k Profit

Insiders who bought DATA Communications Management Corp. (TSE:DCM) in the last 12 months may probably not pay attention to the stock's recent 13% drop. After taking the recent loss into consideration, the CA$305.4k worth of stock they bought is now worth CA$337.0k, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for DATA Communications Management

The Last 12 Months Of Insider Transactions At DATA Communications Management

Over the last year, we can see that the biggest insider purchase was by President Richard Kellam for CA$100k worth of shares, at about CA$3.00 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$3.31. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for DATA Communications Management share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 101.80k shares worth CA$305k. On the other hand they divested 20.80k shares, for CA$63k. Overall, DATA Communications Management insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

DATA Communications Management 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

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. DATA Communications Management insiders own about CA$44m worth of shares. That equates to 23% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At DATA Communications Management Tell Us?

The fact that there have been no DATA Communications Management insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in DATA Communications Management and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for DATA Communications Management and we suggest you have a look.

But note: DATA Communications Management 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 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.