Insiders who bought into Dexterra Group Inc. (TSE:DXT) earlier this year might wish they'd invested more as stock gained 10%

By
Simply Wall St
Published
August 12, 2021
TSX:DXT
Source: Shutterstock

Insiders who bought Dexterra Group Inc. (TSE:DXT) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$44m as a result of the stock's 10% gain over the same period. As a result, their original purchase of CA$486k worth of stock is now worth CA$569k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Dexterra Group

The Last 12 Months Of Insider Transactions At Dexterra Group

In the last twelve months, the biggest single purchase by an insider was when Independent Chair of the Board R. McFarland bought CA$155k worth of shares at a price of CA$6.22 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$7.27), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Dexterra Group insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
TSX:DXT Insider Trading Volume August 13th 2021

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.

Dexterra Group Insiders Bought Stock Recently

Over the last quarter, Dexterra Group insiders have spent a meaningful amount on shares. Overall, three insiders shelled out CA$318k for shares in the company -- and none sold. That shows some optimism about the company's future.

Does Dexterra Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Dexterra Group insiders own 1.5% of the company, worth about CA$7.2m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Dexterra Group Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Dexterra Group insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dexterra Group. Case in point: We've spotted 3 warning signs for Dexterra Group you should be aware of, and 1 of these doesn't sit too well with us.

Of course Dexterra 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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