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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Direct Line Insurance Group plc (LON:DLG).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
View our latest analysis for Direct Line Insurance Group
The Last 12 Months Of Insider Transactions At Direct Line Insurance Group
In the last twelve months, the biggest single sale by an insider was when the insider, Paul Geddes, sold UK£847k worth of shares at a price of UK£3.53 per share. That means that an insider was selling shares at around the current price of UK£2.98. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year we saw more insider selling of Direct Line Insurance Group shares, than buying. You can see the insider transactions (by 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!
I will like Direct Line Insurance Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Have Direct Line Insurance Group Insiders Traded Recently?
In the last quarter there were insider sales totalling UK£102k. However that only slightly eclipses the UK£101k worth of purchases. Ultimately the overall selling isn't enough to tell us much.
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. Insiders own 0.2% of Direct Line Insurance Group shares, worth about UK£6.8m, according to our data. We do generally prefer see higher levels of insider ownership.