Some Domino's Pizza Enterprises Limited (ASX:DMP) shareholders may be a little concerned to see that the MD, Group CEO & Director, Donald Meij, recently sold a whopping AU$2.1m worth of stock at a price of AU$47.79 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.4%.
The Last 12 Months Of Insider Transactions At Domino's Pizza Enterprises
In the last twelve months, the biggest single sale by an insider was when the Non Executive Director, Grant Bourke, sold AU$4.9m worth of shares at a price of AU$49.00 per share. That means that an insider was selling shares at around the current price of AU$47.65. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
We note that in the last year insiders divested 195139 shares for a total of AU$9.5m. In the last year Domino's Pizza Enterprises insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Domino's Pizza Enterprises 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. Domino's Pizza Enterprises insiders own about AU$261m worth of shares (which is 6.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Domino's Pizza Enterprises Tell Us?
An insider hasn't bought Domino's Pizza Enterprises stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.