Have Insiders Been Selling Digi International Inc. (NASDAQ:DGII) Shares?
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 shareholders might well want to know whether insiders have been buying or selling shares in Digi International Inc. (NASDAQ:DGII).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for Digi International
Digi International Insider Transactions Over The Last Year
Vice President of Manufacturing Operations Jon Nyland made the biggest insider sale in the last 12 months. That single transaction was for US$354k worth of shares at a price of US$13.44 each. That means that an insider was selling shares at around the current price of US$12.71. They might be selling for a variety of reasons, but it’s hard to argue this is a bullish sign. We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price. The only individual insider seller over the last year was Jon Nyland.
The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Digi International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Digi International insiders own 2.5% of the company, worth about US$8.8m. Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Digi International Tell Us?
An insider hasn’t bought Digi International stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. On the plus side, Digi International makes money, and is growing profits. When you consider that most companies have higher levels of insider ownership, we’re a little wary. So we’re not rushing to buy, to say the least. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Digi International.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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. Thank you for reading.
