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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 DP Poland Plc (LON:DPP), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for DP Poland
The Last 12 Months Of Insider Transactions At DP Poland
Over the last year, we can see that the biggest insider purchase was by Chairman David Wild for UK£49k worth of shares, at about UK£0.11 per share. That means that an insider was happy to buy shares at above the current price of UK£0.11. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While DP Poland insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
DP Poland is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At DP Poland Have Bought Stock Recently
Over the last quarter, DP Poland insiders have spent a meaningful amount on shares. Specifically, Chairman David Wild bought UK£49k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does DP Poland Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own UK£1.1m worth of DP Poland stock, about 1.1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
So What Do The DP Poland Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more DP Poland stock. While it's good to be aware of 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. Every company has risks, and we've spotted 1 warning sign for DP Poland you should know about.