Have Insiders Been Buying Domain Holdings Australia Limited (ASX:DHG) Shares?
Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Domain Holdings Australia Limited (ASX:DHG), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for Domain Holdings Australia
Domain Holdings Australia Insider Transactions Over The Last Year
Non-Executive Chairman Nicholas Falloon made the biggest insider purchase in the last 12 months. That single transaction was for AU$133k worth of shares at a price of AU$2.65 each. That means that even when the share price was higher, 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. It’s not at all bad to see insiders buy shares at or above current prices.
Over the last year, we can see that insiders have bought 278.98k shares worth AU$766k. In total, Domain Holdings Australia insiders bought more than they sold over the last year. They paid about AU$2.75 on average. These transactions suggest that insiders have considered the current price of AU$2.53 attractive. 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!
Domain Holdings Australia 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 Domain Holdings Australia Have Bought Stock Recently
Over the last quarter, Domain Holdings Australia insiders have spent a meaningful amount on shares. In total, insiders bought AU$76k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership of Domain Holdings Australia
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 0.7% of Domain Holdings Australia shares, worth about AU$10m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Domain Holdings Australia Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Domain Holdings Australia we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Domain Holdings Australia, you should check out this free report on analyst forecasts for the company.
Of course Domain Holdings Australia may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 editorial-team@simplywallst.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. On rare occasion, data errors may occur. Thank you for reading.
