How Much Are Dundee Corporation (TSE:DC.A) Insiders Spending On Buying Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Dundee Corporation (TSE:DC.A).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for Dundee

Dundee Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Jonathan Goodman bought CA$1.7m worth of shares at a price of CA$1.15 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$1.40. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Dundee insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid CA$2.0m for 1.71m shares. But they sold 1.04m shares for CA$1.3m. Overall, Dundee insiders were net buyers during the last year. 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!

Dundee is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders at Dundee Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at Dundee. CA$49k worth of shares were sold by Independent Director Alistair Sinclair. But the good news is that there was purchasing too , worth CA$34k. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership of Dundee

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own CA$3.5m worth of Dundee stock, about 2.8% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

So What Does This Data Suggest About Dundee Insiders?

Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Dundee insiders bought more shares in the company. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

But note: Dundee 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, 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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