Who Has Been Buying Taal Distributed Information Technologies Inc. (CSE:TAAL) Shares?

We often see insiders buying up shares in companies that perform well over the long term. 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 before you buy or sell Taal Distributed Information Technologies Inc. (CSE:TAAL), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Taal Distributed Information Technologies

Taal Distributed Information Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Michael Darcy bought CA$88k worth of shares at a price of CA$2.31 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$8.35. 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.

While Taal Distributed Information Technologies insiders bought shares during the last year, they didn't sell. 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!

Taal Distributed Information Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are Taal Distributed Information Technologies Insiders Buying Or Selling?

There was only a small bit of insider buying, worth CA$5.9k, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Insider Ownership of Taal Distributed Information Technologies

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Taal Distributed Information Technologies insiders own 51% of the company, currently worth about CA$81m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Taal Distributed Information Technologies Insiders?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Taal Distributed Information Technologies insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Taal Distributed Information Technologies. Our analysis shows 3 warning signs for Taal Distributed Information Technologies (2 are significant!) and we strongly recommend you look at them before investing.

But note: Taal Distributed Information Technologies 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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