COO & Executive Director Vladimir Mitnovetski Just Bought 1.4% More Shares In Dicker Data Limited (ASX:DDR)

Whilst it may not be a huge deal, we thought it was good to see that the Dicker Data Limited (ASX:DDR) COO & Executive Director, Vladimir Mitnovetski, recently bought AU$91k worth of stock, for AU$7.38 per share. Although the purchase is not a big one, increasing their shareholding by only 1.4%, it can be interpreted as a good sign.

Check out our latest analysis for Dicker Data

The Last 12 Months Of Insider Transactions At Dicker Data

Over the last year, we can see that the biggest insider purchase was by Chairman & CEO David Dicker for AU$239k worth of shares, at about AU$4.78 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$7.51. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Dicker Data insiders bought shares during the last year, they didn't sell. Their average price was about AU$5.37. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Dicker Data is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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's great to see that Dicker Data insiders own 69% of the company, worth about AU$887m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Dicker Data Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Dicker Data insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Dicker Data is showing 4 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

But note: Dicker Data may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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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