Trade Alert: Non-Executive Chairman Of Diversified United Investment Charles Goode Has Sold Stock

We wouldn't blame Diversified United Investment Limited (ASX:DUI) shareholders if they were a little worried about the fact that Charles Goode, the Non-Executive Chairman recently netted about AU$13m selling shares at an average price of AU$5.37. That's a big disposal, and it decreased their holding size by 35%, which is notable but not too bad.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Diversified United Investment Insider Transactions Over The Last Year

In fact, the recent sale by Charles Goode was the biggest sale of Diversified United Investment shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (AU$5.41). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 35% of Charles Goode's holding.

Over the last year, we can see that insiders have bought 63.00k shares worth AU$331k. But insiders sold 2.47m shares worth AU$13m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Diversified United Investment

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.9% of Diversified United Investment shares, worth about AU$57m. 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 United Investment Tell Us?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Diversified United Investment is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Diversified United Investment. At Simply Wall St, we found 2 warning signs for Diversified United Investment that deserve your attention before buying any shares.

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 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.