Insider Spends US$213k Buying More Shares In Dorel Industries

Investors who take an interest in Dorel Industries Inc. (TSE:DII.B) should definitely note that the Executive VP of Sales & Marketing and Director, Jeff Segel, recently paid CA$1.47 per share to buy CA$213k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 51%, potentially signalling some real optimism.

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Dorel Industries Insider Transactions Over The Last Year

Notably, that recent purchase by Jeff Segel is the biggest insider purchase of Dorel Industries shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.49). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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.

Dorel Industries insiders may have bought shares in the last year, but they didn't sell any. 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!

View our latest analysis for Dorel Industries

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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 11% of Dorel Industries shares, worth about CA$5.2m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Dorel Industries Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Dorel Industries insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dorel Industries. Our analysis shows 3 warning signs for Dorel Industries (2 shouldn't be ignored!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.