Diversified United Investment Non-Executive Director Acquires 1.8% More Stock

Potential Diversified United Investment Limited (ASX:DUI) shareholders may wish to note that the Non-Executive Director, Anthony Burgess, recently bought AU$176k worth of stock, paying AU$5.35 for each share. Although the purchase only increased their holding by 1.8%, it is still a solid purchase in our view.

See our latest analysis for Diversified United Investment

The Last 12 Months Of Insider Transactions At Diversified United Investment

Notably, that recent purchase by Anthony Burgess is the biggest insider purchase of Diversified United Investment shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$5.20). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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.

In the last twelve months Diversified United Investment insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Diversified United Investment is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Diversified United Investment Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Diversified United Investment insiders own 4.9% of the company, worth about AU$55m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Diversified United Investment Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Diversified United Investment shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Diversified United Investment. You'd be interested to know, that we found 1 warning sign for Diversified United Investment and we suggest you have a look.

But note: Diversified United Investment 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.