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From what we can see, insiders were net buyers in Diamond Estates Wines & Spirits Inc.'s (CVE:DWS ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Diamond Estates Wines & Spirits Insider Transactions Over The Last Year
The insider Pierre-Paul Lassonde made the biggest insider purchase in the last 12 months. That single transaction was for CA$300k worth of shares at a price of CA$0.20 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.18). 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Pierre-Paul Lassonde.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Diamond Estates Wines & Spirits
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Diamond Estates Wines & Spirits
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. Our data indicates that Diamond Estates Wines & Spirits insiders own about CA$681k worth of shares (which is 5.6% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Diamond Estates Wines & Spirits Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Diamond Estates Wines & Spirits stock. While it's good to be aware of 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. At Simply Wall St, we found 3 warning signs for Diamond Estates Wines & Spirits that deserve your attention before buying any shares.