Yahoo Finance Great news for Docebo Inc. (TSE:DCBO): Insiders acquired stock in large numbers last year
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Docebo Inc. (TSE:DCBO), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Docebo
The Last 12 Months Of Insider Transactions At Docebo
The Director James Merkur made the biggest insider purchase in the last 12 months. That single transaction was for CA$199k worth of shares at a price of CA$39.73 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$35.81). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$462k for 11.32k shares. But insiders sold 2.50k shares worth CA$181k. In the last twelve months there was more buying than selling by Docebo insiders. 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!
Docebo is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Docebo
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 4.0% of Docebo shares, worth about CA$47m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Docebo Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Docebo shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Docebo and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Docebo, you should check out this free report on analyst forecasts for the company.
Of course Docebo may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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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.
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