Talmora Diamond Insiders Lose Out As Stock Sinks To CA$0.025

The recent 64% drop in Talmora Diamond Inc.'s (CSE:TAI) stock could come as a blow to insiders who purchased CA$117.5k worth of stock at an average buy price of CA$0.05 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only CA$58.8k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Talmora Diamond

The Last 12 Months Of Insider Transactions At Talmora Diamond

In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Raymond Davies bought CA$118k worth of shares at a price of CA$0.05 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.025). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Raymond Davies was the only individual insider to buy during the last year.

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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Talmora Diamond

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. Talmora Diamond insiders own 45% of the company, currently worth about CA$3.0m based on the recent share price. 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 Talmora Diamond Insiders?

It doesn't really mean much that no insider has traded Talmora Diamond shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Talmora Diamond insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Talmora Diamond. For example, Talmora Diamond has 5 warning signs (and 4 which can't be ignored) we think 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.