Diamond Estates Wines & Spirits Loses CA$2.1m Market Value But Insiders See Windfall Of CA$75k

Insiders who bought Diamond Estates Wines & Spirits Inc. (CVE:DWS) in the last 12 months may probably not pay attention to the stock's recent 12% drop. Reason being, despite the recent loss, insiders original purchase value of CA$300.0k is now worth CA$375.0k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Diamond Estates Wines & Spirits

The Last 12 Months Of Insider Transactions At Diamond Estates Wines & Spirits

In the last twelve months, the biggest single purchase by an insider was when insider Pierre-Paul Lassonde bought CA$300k worth of shares at a price of CA$0.20 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.25. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Diamond Estates Wines & Spirits

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Diamond Estates Wines & Spirits insiders own 6.1% of the company, worth about CA$1.1m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Diamond Estates Wines & Spirits Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Diamond Estates Wines & Spirits shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Diamond Estates Wines & Spirits insiders bought more shares in 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. When we did our research, we found 3 warning signs for Diamond Estates Wines & Spirits (2 don't sit too well with us!) that we believe deserve your full attention.

But note: Diamond Estates Wines & Spirits 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 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.