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Potential Diversified United Investment Limited (ASX:DUI) shareholders may wish to note that the Non-Executive Director, Anthony Burgess, recently bought AU$176k worth of stock, paying AU$5.35 for each share. Although the purchase only increased their holding by 1.8%, it is still a solid purchase in our view.
See our latest analysis for Diversified United Investment
The Last 12 Months Of Insider Transactions At Diversified United Investment
Notably, that recent purchase by Anthony Burgess is the biggest insider purchase of Diversified United Investment shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$5.20. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Diversified United Investment insiders may have bought shares in the last year, but they didn't sell any. 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!
Diversified United Investment is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Diversified United Investment
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 4.9% of Diversified United Investment shares, worth about AU$55m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Diversified United Investment Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Diversified United Investment insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Diversified United Investment. For example - Diversified United Investment has 1 warning sign we think you should be aware of.