Insiders who bought in the last 12 months lose an additional UK£14k as DS Smith Plc (LON:SMDS) drops to UK£3.8b
The recent price decline of 6.2% in DS Smith Plc's (LON:SMDS) stock may have disappointed insiders who bought UK£169k worth of shares at an average price of UK£2.99 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth UK£155k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for DS Smith
The Last 12 Months Of Insider Transactions At DS Smith
In the last twelve months, the biggest single purchase by an insider was when Group Finance Director & Executive Director Adrian R. Marsh bought UK£58k worth of shares at a price of UK£2.92 per share. That means that an insider was happy to buy shares at above the current price of UK£2.74. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Adrian R. Marsh was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 56.57k shares for UK£169k. On the other hand they divested 10.00k shares, for UK£30k. In total, DS Smith insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
DS Smith is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At DS Smith Have Bought Stock Recently
At DS Smith,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, four insiders bought UK£150k worth of shares. But we did see Group Finance Director & Executive Director Adrian R. Marsh sell shares worth UK£30k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that DS Smith insiders own 0.2% of the company, worth about UK£7.6m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About DS Smith Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that DS Smith insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DS Smith. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of DS Smith.
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.
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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.
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