Even if it's not a huge purchase, we think it was good to see that Trevor Haynes, the Chairman & CEO of Black Diamond Group Limited (TSE:BDI) recently shelled out CA$95k to buy stock, at CA$1.90 per share. Although the purchase is not a big one, increasing their shareholding by only 1.8%, it can be interpreted as a good sign.

See our latest analysis for Black Diamond Group

The Last 12 Months Of Insider Transactions At Black Diamond Group

Over the last year, we can see that the biggest insider purchase was by Independent Director Edward Kernaghan for CA$172k worth of shares, at about CA$1.02 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$2.02. 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.

While Black Diamond Group insiders bought shares during the last year, they didn't sell. They paid about CA$1.22 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. Black Diamond Group insiders own about CA$13m worth of shares. That equates to 11% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Black Diamond Group Insider Transactions Indicate?

The recent insider purchases are heartening. 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. When combined with notable insider ownership, these factors suggest Black Diamond Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Black Diamond Group. Case in point: We've spotted 3 warning signs for Black Diamond Group you should be aware of.

Of course Black Diamond Group 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.

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. 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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