Even if it's not a huge purchase, we think it was good to see that Mary Garden, the Independent Director of Dexterra Group Inc. (TSE:DXT) recently shelled out CA$66k to buy stock, at CA$6.22 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 28%.
View our latest analysis for Dexterra Group
Dexterra Group Insider Transactions Over The Last Year
Notably, that recent purchase by Mary Garden is the biggest insider purchase of Dexterra Group shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$6.17. 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid CA$276k for 43.35k shares. On the other hand they divested 6.90k shares, for CA$54k. Overall, Dexterra Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Dexterra 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.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.7% of Dexterra Group shares, worth about CA$6.8m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Dexterra Group Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Dexterra Group insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dexterra Group. Case in point: We've spotted 3 warning signs for Dexterra Group you should be aware of, and 1 of these doesn't sit too well with us.