It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Dexus (ASX:DXS).
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.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
The Last 12 Months Of Insider Transactions At Dexus
The CEO & Executive Director of DEXUS Funds Management Limited, Darren Steinberg, made the biggest insider sale in the last 12 months. That single transaction was for AU$2.4m worth of shares at a price of AU$11.85 each. That means that even when the share price was below the current price of AU$12.20, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 28.5% of Darren Steinberg's holding. Darren Steinberg was the only individual insider to sell over the last year.
The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Dexus 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 Dexus Insiders Traded Recently?
We saw some Dexus insider buying shares in the last three months. Independent Non-Executive Director of DEXUS Funds Management Limited Nicola Roxon purchased AU$13k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Does Dexus Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.06% of Dexus shares, worth about AU$8.4m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Dexus Insiders?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. We don't take much encouragement from the transactions by Dexus insiders. And usually insiders own more stock in the company, according to our data. Of course, the future is what matters most. So if you are interested in Dexus, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.