Computer Modelling Group Independent Non-Executive Director Acquires 13% More Stock
Whilst it may not be a huge deal, we thought it was good to see that the Computer Modelling Group Ltd. (TSE:CMG) Independent Non-Executive Director, Alexander Davern, recently bought CA$102k worth of stock, for CA$4.09 per share. That purchase might not be huge but it did increase their holding by 13%.
Computer Modelling Group Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Non-Executive Director Alexander Davern was not their only acquisition of Computer Modelling Group shares this year. They previously made an even bigger purchase of CA$350k worth of shares at a price of CA$3.96 per share. That implies that an insider found the current price of CA$4.24 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Computer Modelling Group insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 308.83k shares worth CA$1.3m. But insiders sold 10.00k shares worth CA$40k. Overall, Computer Modelling Group insiders were net buyers during the last year. 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 Computer Modelling Group
Computer Modelling Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Computer Modelling Group insiders have about 1.9% of the stock, worth approximately CA$5.7m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Computer Modelling Group Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. 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 Computer Modelling Group stock. Of course, the future is what matters most. So if you are interested in Computer Modelling Group, you should check out this free report on analyst forecasts for the company.
But note: Computer Modelling Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.