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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of DSW Capital plc (LON:DSW), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for DSW Capital
The Last 12 Months Of Insider Transactions At DSW Capital
In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director James Alexander Dow bought UK£78k worth of shares at a price of UK£0.53 per share. That means that an insider was happy to buy shares at around the current price of UK£0.58. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months DSW Capital insiders were buying shares, but not selling. Their average price was about UK£0.62. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
DSW Capital is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
DSW Capital Insiders Bought Stock Recently
Over the last quarter, DSW Capital insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought UK£88k worth of shares. This is a positive in our book as it implies some confidence.
Does DSW Capital Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It's great to see that DSW Capital insiders own 57% of the company, worth about UK£7.3m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At DSW Capital Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about DSW Capital. That's what I like to see! 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 4 warning signs for DSW Capital you should be aware of, and 2 of them are a bit concerning.