Stock Analysis

Insider Buying: The D-BOX Technologies Inc. (TSE:DBO) President Just Bought 33% More Shares

TSX:DBO
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Whilst it may not be a huge deal, we thought it was good to see that the D-BOX Technologies Inc. (TSE:DBO) President, Sebastien Mailhot, recently bought CA$60k worth of stock, for CA$0.13 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 33%.

Check out our latest analysis for D-BOX Technologies

The Last 12 Months Of Insider Transactions At D-BOX Technologies

Notably, that recent purchase by Sebastien Mailhot is the biggest insider purchase of D-BOX Technologies shares that we've seen in the last year. That means that even when the share price was higher than CA$0.095 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While D-BOX Technologies insiders bought shares during the last year, they didn't sell. The average buy price was around CA$0.095. This is nice to see since it implies that insiders might see value around current prices (around CA$0.095). You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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TSX:DBO Insider Trading Volume March 6th 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.

Does D-BOX Technologies 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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$400k worth of D-BOX Technologies stock, about 2.5% of the company. We consider this fairly low insider ownership.

So What Do The D-BOX Technologies Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on D-BOX Technologies stock. 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. Every company has risks, and we've spotted 3 warning signs for D-BOX Technologies (of which 1 makes us a bit uncomfortable!) you should know about.

But note: D-BOX Technologies 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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This article by Simply Wall St is general in nature. 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.
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