Have Insiders Sold Dominion Lending Centres Shares Recently?

Anyone interested in Dominion Lending Centres Inc. (TSE:DLCG) should probably be aware that the President of Newton Connectivity Systems, Geoff Willis, recently divested CA$166k worth of shares in the company, at an average price of CA$9.00 each. On the bright side, that sale was only 1.1% of their holding, so we doubt it's very meaningful, on its own.

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Dominion Lending Centres Insider Transactions Over The Last Year

The Co-Founder, Gary Mauris, made the biggest insider sale in the last 12 months. That single transaction was for CA$30m worth of shares at a price of CA$7.60 each. That means that an insider was selling shares at slightly below the current price (CA$8.99). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 16% of Gary Mauris's holding.

Over the last year, we can see that insiders have bought 23.90k shares worth CA$161k. But insiders sold 7.93m shares worth CA$60m. All up, insiders sold more shares in Dominion Lending Centres than they bought, over the last year. The average sell price was around CA$7.60. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Dominion Lending Centres

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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. It's great to see that Dominion Lending Centres insiders own 54% of the company, worth about CA$381m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Dominion Lending Centres Insiders?

Unfortunately, there has been more insider selling of Dominion Lending Centres stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Dominion Lending Centres (of which 1 can't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.