John Arbuthnot Is The Co-Founder of Delta 9 Cannabis Inc. (TSE:DN) And They Just Picked Up 1.0% More Shares

By
Simply Wall St
Published
December 24, 2020
TSX:DN
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Delta 9 Cannabis Inc. (TSE:DN) Co-Founder, John Arbuthnot, recently bought CA$98k worth of stock, for CA$0.55 per share. Although the purchase is not a big one, increasing their shareholding by only 1.0%, it can be interpreted as a good sign.

View our latest analysis for Delta 9 Cannabis

The Last 12 Months Of Insider Transactions At Delta 9 Cannabis

In fact, the recent purchase by Co-Founder John Arbuthnot was not their only trade of Delta 9 Cannabis shares this year. They previously made a sale of -CA$270k worth of shares at a price of CA$0.54 per share. That means that an insider was selling shares at around the current price of CA$0.52. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year we saw more insider selling of Delta 9 Cannabis shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
TSX:DN Insider Trading Volume December 24th 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Delta 9 Cannabis

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Delta 9 Cannabis insiders own 36% of the company, worth about CA$20m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Delta 9 Cannabis Tell Us?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Delta 9 Cannabis insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Delta 9 Cannabis. At Simply Wall St, we found 3 warning signs for Delta 9 Cannabis that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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This article by Simply Wall St is general in nature. 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.
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