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CEO & Director Jonathan Thomson Just Bought 7.8% More Shares In Diploma PLC (LON:DPLM)

Simply Wall St
·3 min read

Whilst it may not be a huge deal, we thought it was good to see that the Diploma PLC (LON:DPLM) CEO & Director, Jonathan Thomson, recently bought UK£57k worth of stock, for UK£21.09 per share. However, it only increased their shares held by 7.8%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Diploma

Diploma Insider Transactions Over The Last Year

Notably, that recent purchase by CEO & Director Jonathan Thomson was not the only time they bought Diploma shares this year. They previously made an even bigger purchase of UK£159k worth of shares at a price of UK£19.41 per share. That means that an insider was happy to buy shares at around the current price of UK£20.90. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Diploma share holders is that insiders were buying at near the current price.

Diploma insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Diploma is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Diploma insiders have about 0.04% of the stock, worth approximately UK£986k. I generally like to see higher levels of ownership.

So What Do The Diploma Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Diploma insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Diploma and we suggest you have a look.

Of course Diploma may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.