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Insiders who bought Digihost Technology Inc. (CVE:DGHI) stock lover the last 12 months are probably not as affected by last week’s 12% loss. After accounting for the recent loss, the US$1.09m worth of shares they purchased is now worth US$1.42m, suggesting a good return on their investment.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Digihost Technology
Digihost Technology Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President & Director Alec Amar for CA$852k worth of shares, at about CA$1.59 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$2.08), we still think insider buying is a positive. 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.
In the last twelve months Digihost Technology insiders were buying shares, but not selling. 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!
Digihost Technology is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Digihost Technology Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Digihost Technology. In total, insiders bought CA$1.1m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Does Digihost Technology Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 14% of Digihost Technology shares, worth about CA$9.3m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Digihost Technology Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Digihost Technology stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Digihost Technology. Case in point: We've spotted 4 warning signs for Digihost Technology you should be aware of, and 1 of these can't be ignored.