CEO, President & Director of Dollarama Picks Up 3.9% More Stock

Dollarama Inc. (TSE:DOL) shareholders (or potential shareholders) will be happy to see that the CEO, President & Director, Neil Rossy, recently bought a whopping CA$10m worth of stock, at a price of CA$176. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.9%.

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Dollarama Insider Transactions Over The Last Year

In fact, the recent purchase by Neil Rossy was the biggest purchase of Dollarama shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of CA$181. 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. 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. The good news for Dollarama share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 60.63k shares worth CA$11m. On the other hand they divested 90.43k shares, for CA$14m. All up, insiders sold more shares in Dollarama than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Dollarama

I will like Dollarama better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Dollarama Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dollarama insiders own 1.5% of the company, currently worth about CA$713m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Dollarama Tell Us?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The recent buying by an insider , along with high insider ownership, suggest that Dollarama insiders are fairly aligned, and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dollarama. In terms of investment risks, we've identified 1 warning sign with Dollarama and understanding it should be part of your investment process.

But note: Dollarama 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.