Have Insiders Been Buying Black Diamond Group Limited (TSE:BDI) Shares This Year?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Black Diamond Group Limited (TSE:BDI).
What Is Insider Buying?
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, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
See our latest analysis for Black Diamond Group
The Last 12 Months Of Insider Transactions At Black Diamond Group
The Independent Director, Edward Kernaghan, made the biggest insider sale in the last 12 months. That single transaction was for CA$237k worth of shares at a price of CA$2.37 each. So what is clear is that an insider saw fit to sell at around the current price of CA$2.12. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was Edward Kernaghan. Notably Edward Kernaghan was also the biggest buyer, having purchased CA$664k worth of shares.
Happily, we note that in the last year insiders paid CA$664k for 379.45k shares. On the other hand they divested 100000 shares, for CA$237k. In the last twelve months there was more buying than selling by Black Diamond Group insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Black Diamond 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.
Black Diamond Group Insiders Bought Stock Recently
It's good to see that Black Diamond Group insiders have made notable investments in the company's shares. Overall, three insiders shelled out CA$172k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Black Diamond Group
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. From our data, it seems that Black Diamond Group insiders own 11% of the company, worth about CA$13m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Black Diamond Group Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Black Diamond Group shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Black Diamond Group, you should check out this free report on analyst forecasts for the company.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
