Potential Dexus (ASX:DXS) shareholders may wish to note that the Independent Non-Executive Chairman of DEXUS Funds Management Limited, Wallace Sheppard, recently bought AU$173k worth of stock, paying AU$8.64 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 20%.
The Last 12 Months Of Insider Transactions At Dexus
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director of DEXUS Funds Management Limited Warwick Negus for AU$225k worth of shares, at about AU$11.44 per share. That means that even when the share price was higher than AU$8.63 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Dexus insiders bought shares during the last year, they didn't sell. The average buy price was around AU$9.89. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.
Does Dexus Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Dexus insiders own 0.2% of the company, worth about AU$15m. We do generally prefer see higher levels of insider ownership.
So What Do The Dexus Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Dexus insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dexus. Our analysis shows 3 warning signs for Dexus (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here