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 Dicker Data Limited (ASX:DDR), that sends out a positive message to the company’s shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Dicker Data Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the COO & Executive Director, Vladimir Mitnovetski, for AU$367k worth of shares, at about AU$14.69 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$11.48. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Vladimir Mitnovetski.
Over the last year, we can see that insiders have bought 80.65k shares worth AU$933k. But insiders sold 35.00k shares worth AU$512k. Overall, Dicker Data insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Dicker Data is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Dicker Data Have Bought Stock Recently
It’s good to see that Dicker Data insiders have made notable investments in the company’s shares. Not only was there no selling that we can see, but they collectively bought AU$324k worth of shares. This makes one think the business has some good points.
Does Dicker Data Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Dicker Data insiders own 67% of the company, currently worth about AU$1.3b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Dicker Data Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Dicker Data. Looks promising! 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. To assist with this, we’ve discovered 2 warning signs that you should run your eye over to get a better picture of Dicker Data.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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