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Whilst it may not be a huge deal, we thought it was good to see that the DGL Group Limited (ASX:DGL) Founder, Simon Henry, recently bought AU$93k worth of stock, for AU$0.47 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
See our latest analysis for DGL Group
DGL Group Insider Transactions Over The Last Year
Notably, that recent purchase by Founder Simon Henry was not the only time they bought DGL Group shares this year. They previously made an even bigger purchase of AU$969k worth of shares at a price of AU$0.59 per share. That means that even when the share price was higher than AU$0.48 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Simon Henry was the only individual insider to buy shares in the last twelve months.
Simon Henry bought 3.26m shares over the last 12 months at an average price of AU$0.58. 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!
DGL Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does DGL Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. It's great to see that DGL Group insiders own 57% of the company, worth about AU$79m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The DGL Group Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest DGL Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for DGL Group that deserve your attention before buying any shares.