Potential Diversified Gas & Oil PLC (LON:DGOC) shareholders may wish to note that the Co-Founder, Robert Hutson, recently bought UK£146k worth of stock, paying UK£0.91 for each share. Although the purchase only increased their holding by 0.8%, it is still a solid purchase in our view.
Diversified Gas & Oil Insider Transactions Over The Last Year
In fact, the recent purchase by Robert Hutson was the biggest purchase of Diversified Gas & Oil shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of UK£0.90. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
In the last twelve months Diversified Gas & Oil insiders were buying shares, but not selling. Their average price was about UK£1.01. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Diversified Gas & Oil is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Diversified Gas & Oil 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. Diversified Gas & Oil insiders own about UK£41m worth of shares. That equates to 7.0% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Diversified Gas & Oil Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Diversified Gas & Oil we think they are probably pretty confident of a bright future. 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.
But note: Diversified Gas & Oil may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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.
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. Thank you for reading.