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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 Dominari Holdings Inc. (NASDAQ:DOMH), 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.
Check out our latest analysis for Dominari Holdings
The Last 12 Months Of Insider Transactions At Dominari Holdings
Over the last year, we can see that the biggest insider purchase was by CEO & Chairman Anthony Hayes for US$140k worth of shares, at about US$2.00 per share. That means that even when the share price was higher than US$1.58 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Dominari Holdings insiders bought shares during the last year, they didn't sell. They paid about US$2.41 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Dominari Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Dominari Holdings Have Bought Stock Recently
There was some insider buying at Dominari Holdings over the last quarter. Insiders shelled out US$22k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Dominari Holdings insiders own about US$3.6m worth of shares. That equates to 36% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.