Insider Returns Down To US$267k As BuildDirect.com Technologies' Stock Dips 11%

Insiders who purchased BuildDirect.com Technologies Inc. (CVE:BILD) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. After taking the recent loss into consideration, the US$150.9k worth of stock they bought is now worth US$417.7k, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At BuildDirect.com Technologies

The Chief Executive Officer Shawn Wilson made the biggest insider purchase in the last 12 months. That single transaction was for CA$106k worth of shares at a price of CA$0.43 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$1.19. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

BuildDirect.com Technologies insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for BuildDirect.com Technologies

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BuildDirect.com Technologies Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at BuildDirect.com Technologies. In total, insiders bought CA$151k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of BuildDirect.com Technologies

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own CA$1.3m worth of BuildDirect.com Technologies stock, about 2.4% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At BuildDirect.com Technologies Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that BuildDirect.com Technologies insiders are expecting a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 2 warning signs for BuildDirect.com Technologies (1 is a bit unpleasant!) that we believe deserve your full attention.

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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.