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Insiders who acquired AU$4.0m worth of Dimerix Limited's (ASX:DXB) stock at an average price of AU$0.21 in the past 12 months may be dismayed by the recent 10.0% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$2.6m which is not ideal.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Dimerix
Dimerix Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Peter Meurs for AU$3.5m worth of shares, at about AU$0.20 per share. That means that even when the share price was higher than AU$0.14 (the recent price), 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Peter Meurs was the only individual insider to buy during the last year.
Peter Meurs bought 19.21m shares over the last 12 months at an average price of AU$0.21. 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!
Dimerix 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.
Does Dimerix Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Dimerix insiders own 21% of the company, worth about AU$8.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Dimerix Tell Us?
It doesn't really mean much that no insider has traded Dimerix shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Dimerix and we see no evidence to suggest they are worried about the future. 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. Case in point: We've spotted 5 warning signs for Dimerix you should be aware of, and 2 of these shouldn't be ignored.