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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in D-BOX Technologies Inc. (TSE:DBO).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
See our latest analysis for D-BOX Technologies
The Last 12 Months Of Insider Transactions At D-BOX Technologies
In fact, the recent purchase by Sebastien Mailhot was the biggest purchase of D-BOX Technologies shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of CA$0.095. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
D-BOX Technologies insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$0.095 on average. This is nice to see since it implies that insiders might see value around current prices (around CA$0.095). You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
D-BOX Technologies Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at D-BOX Technologies. Overall, four insiders shelled out CA$140k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.