Nicole Inwentash Just Bought 139% More Shares In ThreeD Capital Inc. (CSE:IDK)

Potential ThreeD Capital Inc. (CSE:IDK) shareholders may wish to note that insider Nicole Inwentash recently bought CA$500k worth of stock, paying CA$0.20 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 139%, potentially signalling some real optimism.

View our latest analysis for ThreeD Capital

The Last 12 Months Of Insider Transactions At ThreeD Capital

In fact, the recent purchase by Nicole Inwentash was the biggest purchase of ThreeD Capital shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (CA$2.02), we still think insider buying is a positive. 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 insiders purchased 5.95m shares for CA$1.1m. But they sold 3.48m shares for CA$584k. In total, ThreeD Capital insiders bought more than they sold over the last year. The average buy price was around CA$0.18. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

ThreeD Capital is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. It's great to see that ThreeD Capital insiders own 42% of the company, worth about CA$39m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At ThreeD Capital Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. 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 ThreeD Capital insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ThreeD Capital. Case in point: We've spotted 6 warning signs for ThreeD Capital you should be aware of, and 3 of them don't sit too well with us.

But note: ThreeD Capital 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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