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$92k to buy stock, at CA$0.20 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 15%.
See our latest analysis for DelphX Capital Markets
DelphX Capital Markets Insider Transactions Over The Last Year
In fact, the recent purchase by Non-Executive Independent Director Salim Hasham was not their only acquisition of DelphX Capital Markets shares this year. They previously made an even bigger purchase of CA$204k worth of shares at a price of CA$0.08 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.24), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 4.13m shares worth CA$411k. But they sold 102.00k shares for CA$16k. In total, DelphX Capital Markets insiders bought more than they sold over the last year. Their average price was about CA$0.099. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does DelphX Capital Markets Boast High 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. We usually like to see fairly high levels of insider ownership. It appears that DelphX Capital Markets insiders own 22% of the company, worth about CA$8.0m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About DelphX Capital Markets Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest DelphX Capital Markets insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for DelphX Capital Markets you should be aware of, and 3 of these can't be ignored.