Digi Power X Insiders Up US$1.7m On US$1.09m Investment

Insiders who purchased Digi Power X Inc. (CVE:DGX) shares in the past 12 months are unlikely to be deeply impacted by the stock's 13% decline over the past week. After accounting for the recent loss, the US$1.09m worth of shares they purchased is now worth US$2.82m, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Digi Power X Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President & Director Alec Amar bought CA$852k worth of shares at a price of CA$1.59 per share. We do like to see buying, but this purchase was made at well below the current price of CA$4.11. 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.

Digi Power X insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Digi Power X

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Digi Power X insiders own about CA$21m worth of shares. That equates to 12% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Digi Power X Tell Us?

The fact that there have been no Digi Power X insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Digi Power X insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Digi Power X. Case in point: We've spotted 3 warning signs for Digi Power X you should be aware of.

But note: Digi Power X 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.