Stock Analysis

Have Insiders Sold Computer Modelling Group Ltd. (TSE:CMG) Shares Recently?

Published
TSX:CMG
Source: Shutterstock

Investors may wish to note that the Vice Chairman of the Board of Computer Modelling Group Ltd., Kenneth Dedeluk, recently netted CA$86k from selling stock, receiving an average price of CA$5.70. However we note that the sale only shrunk their holding by 1.2%.

See our latest analysis for Computer Modelling Group

The Last 12 Months Of Insider Transactions At Computer Modelling Group

Notably, that recent sale by Vice Chairman of the Board Kenneth Dedeluk was not the only time they sold Computer Modelling Group shares this year. Earlier in the year, they fetched CA$5.10 per share in a -CA$1.1m sale. That means that even when the share price was below the current price of CA$6.04, an insider wanted to cash in some shares. 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 14% of Kenneth Dedeluk's holding.

Insiders in Computer Modelling Group didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
TSX:CMG Insider Trading Volume December 1st 2022

I will like Computer Modelling Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Computer Modelling Group

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.6% of Computer Modelling Group shares, worth about CA$18m. 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 Computer Modelling Group Tell Us?

An insider hasn't bought Computer Modelling Group stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Computer Modelling Group is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Computer Modelling Group. While conducting our analysis, we found that Computer Modelling Group has 2 warning signs and it would be unwise to ignore these.

Of course Computer Modelling 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.

Valuation is complex, but we're helping make it simple.

Find out whether Computer Modelling Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis