We don’t like to see insiders selling after bad news as it raises the question of whether more bad news might be on the way. Ideally, we want to see insider buying as that suggests market reaction may be overdone and that the depressed stock price could represent a buying opportunity. This is what we have seen at Badger Daylighting Ltd. after the company lowered 2019 adjusted EBITDA guidance on Nov. 5. Insiders have spent $1.2-million buying shares in the public market since the bad news was announced.
Ted Dixon is CEO of INK Research which provides insider news and knowledge to investors. For more background on insider reporting in Canada, visit the FAQ section at www.inkresearch.com. Securities referenced in this profile may have already appeared in recent reports distributed to INK subscribers. INK staff may also hold a position in profiled securities.
Chart reflects public-market transactions of common shares or unit trusts by company officers and directors.