Diverger Up 16%, Insider Buyers Are Up 23%

Diverger Limited (ASX:DVR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 16% resulting in a AU$6.4m addition to the company’s market value. In other words, the original AU$963.6k purchase is now worth AU$1.18m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Diverger

Diverger Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Peter Hollick bought AU$957k worth of shares at a price of AU$1.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$1.23. 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.

Diverger insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Diverger is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Diverger insiders own about AU$11m worth of shares. That equates to 24% 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.

So What Does This Data Suggest About Diverger Insiders?

It doesn't really mean much that no insider has traded Diverger shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Diverger insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Diverger has 2 warning signs we think you should be aware of.

But note: Diverger 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.