U.S. markets close in 3 hours 10 minutes
  • S&P 500

    3,663.36
    -29.87 (-0.81%)
     
  • Dow 30

    29,333.02
    -257.39 (-0.87%)
     
  • Nasdaq

    10,829.27
    -38.66 (-0.36%)
     
  • Russell 2000

    1,658.05
    -21.54 (-1.28%)
     
  • Crude Oil

    77.17
    -1.57 (-1.99%)
     
  • Gold

    1,635.60
    -20.00 (-1.21%)
     
  • Silver

    18.58
    -0.33 (-1.75%)
     
  • EUR/USD

    0.9620
    -0.0068 (-0.70%)
     
  • 10-Yr Bond

    3.8510
    +0.1540 (+4.17%)
     
  • GBP/USD

    1.0693
    -0.0163 (-1.51%)
     
  • USD/JPY

    144.5550
    +1.2350 (+0.86%)
     
  • BTC-USD

    19,066.29
    +10.91 (+0.06%)
     
  • CMC Crypto 200

    437.92
    +4.82 (+1.11%)
     
  • FTSE 100

    7,020.95
    +2.35 (+0.03%)
     
  • Nikkei 225

    26,431.55
    -722.28 (-2.66%)
     

Insiders might want to re-evaluate their AU$4.0m stock purchase as Dimerix Limited (ASX:DXB) drops to AU$43m

·3 min read

Insiders who acquired AU$4.0m worth of Dimerix Limited's (ASX:DXB) stock at an average price of AU$0.21 in the past 12 months may be dismayed by the recent 10.0% price decline. 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 AU$2.6m which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Dimerix

Dimerix Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Peter Meurs for AU$3.5m worth of shares, at about AU$0.20 per share. That means that even when the share price was higher than AU$0.14 (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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Peter Meurs was the only individual insider to buy during the last year.

Peter Meurs bought 19.21m shares over the last 12 months at an average price of AU$0.21. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

Dimerix 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.

Does Dimerix 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. It appears that Dimerix insiders own 21% of the company, worth about AU$8.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Dimerix Tell Us?

It doesn't really mean much that no insider has traded Dimerix shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Dimerix and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for Dimerix you should be aware of, and 2 of these shouldn't be ignored.

Of course Dimerix may not be the best stock to buy. So you may wish to see this free collection of high quality 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