Stock Analysis

The President & COO of The Descartes Systems Group Inc. (TSE:DSG), John Pagan, Just Bought 19% More Shares

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The Descartes Systems Group Inc. (TSE:DSG) shareholders (or potential shareholders) will be happy to see that the President & COO, John Pagan, recently bought a whopping CA$3.3m worth of stock, at a price of CA$104. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 19%.

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Descartes Systems Group Insider Transactions Over The Last Year

Notably, that recent purchase by John Pagan is the biggest insider purchase of Descartes Systems Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$105. 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. The good news for Descartes Systems Group share holders is that insiders were buying at near the current price.

Descartes Systems Group 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. By clicking on the graph below, you can see the precise details of each insider transaction!

TSX:DSG Insider Trading Volume March 15th 2023

Descartes Systems Group 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

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Descartes Systems Group insiders own 0.3% of the company, worth about CA$28m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Descartes Systems Group Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Descartes Systems Group insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Descartes Systems Group, you should check out this free report on analyst forecasts for the company.

Of course Descartes Systems Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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