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Had insiders known Redline Communications Group Inc. (TSE:RDL) would hit CA$12m they might have invested more last year

·3 min read

Last week, Redline Communications Group Inc. (TSE:RDL) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 19% last week, resulting in a CA$2.1m increase in the company's market worth. Put another way, the original US$81k acquisition is now worth US$119k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Redline Communications Group

Redline Communications Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Ronan McGrath bought CA$65k worth of shares at a price of CA$0.52 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.76. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Redline Communications Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Redline Communications Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are Redline Communications Group Insiders Buying Or Selling?

Independent Chairman of the Board David McDonnell bought just CA$2.3k worth of shares in that time. That's not much at all. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

Does Redline Communications Group Boast High 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. From looking at our data, insiders own CA$213k worth of Redline Communications Group stock, about 1.7% of the company. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Redline Communications Group Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Redline Communications Group insiders are doubting the company. While we like knowing 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 instance, we've identified 3 warning signs for Redline Communications Group (2 are concerning) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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