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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Domain Holdings Australia Limited (ASX:DHG), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for Domain Holdings Australia
Domain Holdings Australia Insider Transactions Over The Last Year
Non-Executive Chairman Nicholas Falloon made the biggest insider purchase in the last 12 months. That single transaction was for AU$133k worth of shares at a price of AU$2.65 each. That means that even when the share price was higher, an insider wanted to purchase shares. 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. It’s not at all bad to see insiders buy shares at or above current prices.
Over the last year, we can see that insiders have bought 278.98k shares worth AU$766k. In total, Domain Holdings Australia insiders bought more than they sold over the last year. They paid about AU$2.75 on average. These transactions suggest that insiders have considered the current price of AU$2.53 attractive. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Domain Holdings Australia is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Domain Holdings Australia Have Bought Stock Recently
Over the last quarter, Domain Holdings Australia insiders have spent a meaningful amount on shares. In total, insiders bought AU$76k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.