Insider Buying: The Dicker Data Limited (ASX:DDR) COO & Executive Director Just Bought 1.4% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Dicker Data Limited (ASX:DDR) COO & Executive Director, Vladimir Mitnovetski, recently bought AU$91k worth of stock, for AU$7.38 per share. However, it only increased their shares held by 1.4%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for Dicker Data
Dicker Data Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO David Dicker bought AU$239k worth of shares at a price of AU$4.78 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$7.51. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Dicker Data insiders were buying shares, but not selling. Their average price was about AU$5.37. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Dicker Data insiders own 69% of the company, worth about AU$887m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Dicker Data Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Dicker Data. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for Dicker Data (1 shouldn't be ignored!) that we believe deserve your full attention.
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.
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.
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