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Even if it's not a huge purchase, we think it was good to see that Salim Hasham, the Non-Executive Independent Director of DelphX Capital Markets Inc. (CVE:DELX) recently shelled out CA$75k to buy stock, at CA$0.09 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 21%.
See our latest analysis for DelphX Capital Markets
The Last 12 Months Of Insider Transactions At DelphX Capital Markets
Notably, that recent purchase by Non-Executive Independent Director Salim Hasham was not the only time they bought DelphX Capital Markets shares this year. They previously made an even bigger purchase of CA$92k worth of shares at a price of CA$0.20 per share. That means that even when the share price was higher than CA$0.095 (the recent price), an insider wanted to purchase shares. 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.
In the last twelve months DelphX Capital Markets insiders were buying shares, but not selling. They paid about CA$0.12 on average. These transactions suggest that insiders have considered the current price attractive. 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!
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
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 19% of DelphX Capital Markets shares, worth about CA$3.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At DelphX Capital Markets Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of DelphX Capital Markets we think they are probably pretty confident of a bright future. 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. For example, DelphX Capital Markets has 5 warning signs (and 3 which are a bit concerning) we think you should know about.