We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 we'll take a look at whether insiders have been buying or selling shares in Drone Delivery Canada Corp. (CVE:FLT).
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 equally, we would consider it foolish to ignore insider transactions altogether. 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.
Drone Delivery Canada Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Member of Advisory Board Anthony Di Benedetto bought CA$120k worth of shares at a price of CA$1.20 per share. That means that even when the share price was higher than CA$0.85 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.
In the last twelve months Drone Delivery Canada insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Drone Delivery Canada is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Drone Delivery Canada Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Drone Delivery Canada insiders own 6.7% of the company, worth about CA$10m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Drone Delivery Canada Insiders?
The fact that there have been no Drone Delivery Canada insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Drone Delivery Canada and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in Drone Delivery Canada, you should check out this free report on analyst forecasts for the company.
Of course Drone Delivery Canada 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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