It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Domain Holdings Australia Limited (ASX:DHG).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Check out our latest analysis for Domain Holdings Australia
The Last 12 Months Of Insider Transactions At Domain Holdings Australia
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Nicholas Falloon bought AU$133k worth of shares at a price of AU$2.65 per share. That means that an insider was happy to buy shares at above the current price. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
Over the last year, we can see that insiders have bought 228.98k shares worth AU$613k. In total, Domain Holdings Australia insiders bought more than they sold over the last year. The average buy price was around AU$2.68. These transactions suggest that insiders have considered the current price of AU$2.60 attractive. You can see a visual depiction of insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Domain Holdings Australia 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. From our data, it seems that Domain Holdings Australia insiders own 0.7% of the company, worth about AU$10m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Do The Domain Holdings Australia Insider Transactions Indicate?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Domain Holdings Australia and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Domain Holdings Australia, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.