Bullish insiders at Diebold Nixdorf, Incorporated (NYSE:DBD) loaded up on US$955k of stock earlier this year
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Diebold Nixdorf, Incorporated (NYSE:DBD), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Diebold Nixdorf
The Last 12 Months Of Insider Transactions At Diebold Nixdorf
The Independent Director Arthur Anton made the biggest insider purchase in the last 12 months. That single transaction was for US$293k worth of shares at a price of US$2.93 each. So it's clear an insider wanted to buy, at around the current price, which is US$2.94. 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. Happily, the Diebold Nixdorf insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid US$955k for 284.54k shares. On the other hand they divested 8.00k shares, for US$91k. In the last twelve months there was more buying than selling by Diebold Nixdorf insiders. Their average price was about US$3.36. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Diebold Nixdorf Have Bought Stock Recently
Over the last quarter, Diebold Nixdorf insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$704k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership of Diebold Nixdorf
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Diebold Nixdorf insiders own 8.3% of the company, worth about US$19m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Diebold Nixdorf Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Diebold Nixdorf insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Diebold Nixdorf has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
But note: Diebold Nixdorf may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
