Trade Alert: The Independent Director Of Dundee Corporation (TSE:DC.A), Andrew Molson, Has Just Spent CA$110k Buying A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Andrew Molson, the Independent Director of Dundee Corporation (TSE:DC.A) recently shelled out CA$110k to buy stock, at CA$1.47 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Dundee

The Last 12 Months Of Insider Transactions At Dundee

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$1.41. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 2.87m shares worth CA$3.6m. But they sold 1.00m shares for CA$1.3m. In the last twelve months there was more buying than selling by Dundee insiders. The chart below shows insider transactions (by companies and individuals) over the last year. 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.

Insider Ownership

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. Our data suggests Dundee insiders own 2.4% of the company, worth about CA$3.6m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

So What Does This Data Suggest About Dundee Insiders?

The stark truth for Dundee is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. But insiders own relatively little of the company, from what we can see. So overall it's hard to argue insiders are bullish. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Dundee has 1 warning sign and it would be unwise to ignore it.

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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