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Even if it's not a huge purchase, we think it was good to see that Shawn Wilson, the Chief Executive Officer of BuildDirect.com Technologies Inc. (CVE:BILD) recently shelled out CA$106k to buy stock, at CA$0.43 per share. Even though that isn't a massive buy, it did increase their holding by 196%, which is arguably a good sign.
See our latest analysis for BuildDirect.com Technologies
BuildDirect.com Technologies Insider Transactions Over The Last Year
In fact, the recent purchase by Shawn Wilson was the biggest purchase of BuildDirect.com Technologies shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (CA$0.92), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
BuildDirect.com Technologies 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
BuildDirect.com Technologies is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does BuildDirect.com Technologies Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that BuildDirect.com Technologies insiders own 5.3% of the company, worth about CA$2.0m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Do The BuildDirect.com Technologies Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that BuildDirect.com Technologies insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with BuildDirect.com Technologies (including 1 which is a bit concerning).