An important shift is occurring in terms of how insiders are signalling opportunity in the Canadian market. At the close on May 15, we implemented the spring rebalancing of the INK Canadian Insider Index, which saw a significant increase in oil and gas constituent names and a reduction in its exposure to mining stocks. When the index changes this much, it may be picking up a notable shift in the investing environment.
In the November, 2025, rebalancing, the basic materials sector jumped to a 34 per cent allocation from 22 per cent as insiders signalled that both precious and industrial-metals miners were offering above-average opportunity. The index subsequently rallied 39.6 per cent between that Nov. 14 rebalancing and May 15, versus 11.8 per cent for the S&P/TSX Composite over the same period.
As a reminder, the 50-stock INK CIN Index serves as the institutional real-time track record of the INK Edge process. The process puts insider characteristics into context with respect to some other factors that may influence a stock’s future performance by ranking stocks based on the interplay of valuations, insider activity and holdings, and price momentum.
This approach allows us to focus on more than just the size of insider transactions, which, in our experience, is only one consideration to take into account when assessing insider commitment at a firm.
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The spring rebalancing has meaningfully reshaped the index’s resource exposure. Energy gained five names on net while basic materials shed the same number, leaving the two sectors tied at 13 names each, together accounting for 52 per cent of the index, which is set to equal weight at each rebalancing.
The barbell positioning likely reflects competing global forces. Global growth supported by central banks reluctant to raise rates and elevated defence and industrial spending across the major Western economies would broadly support resource demand. Meanwhile, the extent and uncertain duration of global energy product shortages have boosted the role of oil and gas stocks as a hedge against supply disruptions.
Today, we look at three index newcomers which reinforce the overall enthusiasm that insiders are signalling towards the resource area.
Bonterra Energy Corp. (BNE-T) is a Calgary-based light oil producer with assets across three Alberta plays: Pembina Cardium for stable production and free cash flow, Bonanza Charlie Lake as its current growth driver, and Wembley Montney for longer-term optionality.
For the quarter ended March 31, production averaged 15,463 boe/d and funds flow totalled $23.5-million, or 64 cents per fully diluted share. New wells at Charlie Lake delivered combined 30-day peak rates of roughly 3,100 boe/d, including approximately 1,325 barrels per day of light crude oil. The company expects 2026 average production of 16,200 to 16,400 boe/d, weighted approximately 50 to 52 per cent to oil and liquids, on a capital program of $75-million to $80-million. Chief executive officer Patrick Oliver flagged accelerated free-funds flow and debt reduction as priorities through the balance of the year.
On Jan. 7, a pair of Bonterra Energy insiders bought a total of 66,800 common shares in the public market at an average price of $4.21. Officers and directors hold more than 6.1 million shares, representing 16.8 per cent of shares outstanding, according to INK data. That leaves Bonterra with above-median beneficial ownership by officers and directors compared with other small-cap stocks in the Energy sector.
ADF Group Inc. (DRX-T) is a Terrebonne, Que.-based steel fabricator that is positioned to benefit from a global growth scenario where we see increased industrial infrastructure spending. For its fiscal year ended Jan. 31, revenues were $258.7-million, down from $339.6-million a year earlier as U.S. tariffs weighed on both volumes and margins. ADF generated $49.4-million in cash flow from operations versus $55.1-million a year earlier and posted net income of $26.3-million, or 93 cents per share, versus $56.8-million, or $1.84 per share.
Encouragingly, the order backlog reached a record $561.1-million versus $293.1-million a year earlier, with 57 per cent of it tied to Canadian contracts, a shift that chief executive officer Jean Paschini said positions ADF more appropriately for the tariff reality with the United States.
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Mr. Paschini holds just over four million multiple voting shares of the company, representing 29.3 per cent of voting rights attached to all shares of the company. Based on INK data, ADF Group has above median beneficial ownership by officers and directors compared with other small-cap stocks in the basic materials sector. The high degree of ownership helped the stock gain a spot in the index this spring. The most recent public activity by an officer or director was on Sept. 24, 2025, when director Luc Reny bought 10,000 shares at an average price of $8.08.
The financials sector now sits at 14 per cent of the INK CIN index, a respectable showing but well below the S&P/TSX Composite’s weighting of over 33 per cent. Newcomer Queen’s Road Capital Investment Ltd. (QRC-T) is a fitting financials addition to the INK CIN index this spring, given the benchmark’s tilt toward Canada’s resource economy.
QRC is an investment company focused on mineral projects in or near production and prioritizes convertible debenture structures. Its business model strives to deliver income regardless of commodity cycles while preserving downside protection through debt seniority and unlimited equity upside on conversion. As a result of QRC joining the index this spring, even the financials sector picks up commodity exposure. This reinforces the resource orientation that defines the index heading into the summer of 2026.
On April 30, Queen’s Road Capital CEO Warren Gilman bought 10,905 shares in the public market at $15.50. He now holds just over 6.2 million shares, representing about 12 per cent of shares outstanding. His holdings help to give QRC above-median beneficial ownership by officers and directors compared with other mid-cap stocks in the financials sector.
Ted Dixon is CEO of INK Research, which provides insider news and knowledge to investors.