Insider Stock Buying Reaches US$1.0m On DIRTT Environmental Solutions
Multiple insiders secured a larger position in DIRTT Environmental Solutions Ltd. (TSE:DRT) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for DIRTT Environmental Solutions
The Last 12 Months Of Insider Transactions At DIRTT Environmental Solutions
In the last twelve months, the biggest single purchase by an insider was when Director Aron English bought CA$677k worth of shares at a price of CA$0.43 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.31). 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 2.30m shares worth CA$1.0m. But they sold 70.51k shares for CA$35k. In total, DIRTT Environmental Solutions insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Are DIRTT Environmental Solutions Insiders Buying Or Selling?
We have seen a bit of insider selling at DIRTT Environmental Solutions, over the last three months. CA$35k worth of shares were sold by insiders. But at least we saw CA$22k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that DIRTT Environmental Solutions insiders own about CA$1.9m worth of shares (which is 6.1% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At DIRTT Environmental Solutions Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the difference isn't enough to have us worried. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if DIRTT Environmental Solutions insiders bought more shares in the company. While we like knowing 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. Be aware that DIRTT Environmental Solutions is showing 5 warning signs in our investment analysis, and 2 of those can't be ignored...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.
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