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Whilst it may not be a huge deal, we thought it was good to see that the Dream Unlimited Corp. (TSE:DRM) President, Michael Cooper, recently bought CA$75k worth of stock, for CA$19.12 per share. Although the purchase is not a big one, increasing their shareholding by only 9.8%, it can be interpreted as a good sign.
View our latest analysis for Dream Unlimited
Dream Unlimited Insider Transactions Over The Last Year
Notably, that recent purchase by President Michael Cooper was not the only time they bought Dream Unlimited shares this year. Earlier in the year, they paid CA$18.00 per share in a CA$720k purchase. That implies that an insider found the current price of CA$19.16 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Dream Unlimited insider decided to buy shares at close to current prices. Michael Cooper was the only individual insider to buy shares in the last twelve months.
Michael Cooper purchased 43.90k shares over the year. The average price per share was CA$18.10. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Dream Unlimited is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Dream Unlimited insiders have about 0.3% of the stock, worth approximately CA$2.9m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.
So What Does This Data Suggest About Dream Unlimited Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Dream Unlimited insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Dream Unlimited that deserve your attention before buying any shares.