Some Computer Modeling Group Ltd. (TSE:CMG) Shareholders might be a little concerned that Board Vice Chairman Kenneth Dedeluk recently sold C$1.1 million worth of shares at a price of C$5.00 per share. It’s a big divestment, and it reduced the size of their operation by 14%, which is remarkable but not too bad.
See our latest analysis for Computer Modeling Group
The last 12 months of insider trading at Computer Modeling Group
In fact, the recent sale by Kenneth Dedeluk was the largest sale of Computer Modeling Group stock by an insider in the last twelve months, according to our records. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. The good news is that this big sell was well above the current price of CA$4.62. It is therefore difficult to draw a firm conclusion.
In the past twelve months, insiders have purchased 20,750 shares for C$83,000. But they sold 342,800 shares for C$1.7 million. In total, Computer Modeling Group insiders have sold more than they bought over the past year. The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all individual trades including stock price, individual and date!
I’d like Computer Modeling Group better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. High insider participation often makes company management more concerned with the interests of shareholders. Computer Modeling Group insiders appear to own 3.6% of the company, worth approximately C$13 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.
So what do the computer modeling group’s insider trades indicate?
An insider recently sold shares, but did not buy. Despite some insider buying, the longer-term picture doesn’t make us much more positive. Insider ownership is not particularly high, so this analysis makes us cautious about the company. We would therefore only buy after careful consideration. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Example: we have identified 2 warning signs for Computer Modeling Group you should be aware.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.