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Even if it's not a huge purchase, we think it was good to see that Raul Fernandez, a DXC Technology Company (NYSE:DXC) insider, recently shelled out US$100k to buy stock, at US$39.73 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 15%.
The Last 12 Months Of Insider Transactions At DXC Technology
Notably, that recent purchase by insider Raul Fernandez was not the only time they bought DXC Technology shares this year. Earlier in the year, they paid US$26.28 per share in a US$300k purchase. Even though the purchase was made at a significantly lower price than the recent price (US$40.33), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Raul Fernandez bought 16.38k shares over the last 12 months at an average price of US$27.45. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of DXC Technology
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that DXC Technology insiders own 0.8% of the company, worth about US$80m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About DXC Technology Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of DXC Technology we think they are probably pretty confident of a bright 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. For example - DXC Technology has 1 warning sign we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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. 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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