12-month performance: +3% Insider activity: Bullish Insider buying pattern: Large purchases from CEO Recent news: Good Q1 results
Dream Unlimited is a Canadian real estate company. Headquartered in Toronto, it’s engaged in various real estate activities, including residential land development, housing and condominium development, property management services, commercial property ownership, and renewable energy infrastructure. The company is listed on the Toronto Stock Exchange and currently has a market capitalisation of CAD $818 million.
Previous insider trades were timed well In June last year, Dream Unlimited announced that it had entered into a 15-year lease agreement with the Federal Government of Canada. What stood out to us was that shortly after the announcement, CEO Michael Cooper spent around CAD $4.3 million on shares in Dream Unlimited. We saw this large insider trade as a bullish signal. In hindsight, following this insider transaction could have resulted in a profitable trade. Over the next six months, DRM shares rose approximately 40% after the company issued solid Q3 and Q4 results. Source: 2iQ Research
Insider transactions: the CEO is buying again As a result of Covid-19, Dream Unlimited shares have experienced a sharp pullback since early March and what’s interesting is that CEO Michael Cooper has recently purchased more shares. According to regulatory filings, the insider purchased another 40,000 DRM shares on 21 July, spending approximately CAD $720,000 on stock. Cooper also purchased 50,000 shares back in mid-March, spending around CAD $393,000 on stock. These purchases suggest that the insider is confident about the future and that he expects the stock to rebound after its recent pullback. We view this insider buying activity as a bullish signal.
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