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Insiders were net buyers of De La Rue plc's (LON:DLAR ) stock during the past year. That is, insiders bought more stock than they sold.
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.
Check out our latest analysis for De La Rue
The Last 12 Months Of Insider Transactions At De La Rue
Notably, that recent purchase by Richard Griffiths is the biggest insider purchase of De La Rue shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is UK£1.05. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for De La Rue share holders is that an insider was buying at near the current price. Richard Griffiths was the only individual insider to buy shares in the last twelve months.
Richard Griffiths bought a total of 824.60k shares over the year at an average price of UK£1.01. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of De La Rue
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.5% of De La Rue shares, worth about UK£5.1m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The De La Rue Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that De La Rue insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing De La Rue. Our analysis shows 3 warning signs for De La Rue (2 are a bit concerning!) and we strongly recommend you look at these before investing.