Potential Diversified Gas & Oil PLC (LON:DGOC) shareholders may wish to note that the Co-Founder, Robert Hutson, recently bought UK£238k worth of stock, paying UK£0.68 for each share. Although the purchase only increased their holding by 1.7%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Diversified Gas & Oil
Notably, that recent purchase by Robert Hutson is the biggest insider purchase of Diversified Gas & Oil shares that we've seen in the last year. That means that even when the share price was higher than UK£0.63 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Diversified Gas & Oil insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around UK£0.87. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Diversified Gas & Oil Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Diversified Gas & Oil insiders own about UK£29m worth of shares. That equates to 7.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Diversified Gas & Oil Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Diversified Gas & Oil insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 6 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in Diversified Gas & Oil.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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