One Domino's Pizza Enterprises Insider Has Reduced Their Stake

Looking at Domino's Pizza Enterprises Limited's (ASX:DMP ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Domino's Pizza Enterprises

Domino's Pizza Enterprises Insider Transactions Over The Last Year

The MD, Group CEO & Director, Donald Meij, made the biggest insider sale in the last 12 months. That single transaction was for AU$8.3m worth of shares at a price of AU$55.52 each. So what is clear is that an insider saw fit to sell at around the current price of AU$53.69. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Donald Meij was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 1.57k shares worth AU$76k. But they sold 150.00k shares for AU$8.3m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Domino's Pizza Enterprises Boast High 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. Domino's Pizza Enterprises insiders own about AU$217m worth of shares (which is 4.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Domino's Pizza Enterprises Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Domino's Pizza Enterprises shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Domino's Pizza Enterprises insiders selling. 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. In terms of investment risks, we've identified 4 warning signs with Domino's Pizza Enterprises and understanding these should be part of your investment process.

But note: Domino's Pizza Enterprises 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 of direct interests only, but not derivative transactions or indirect interests.

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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.