The MD, CEO & Executive Director of Desane Group Holdings Limited (ASX:DGH), Phil Montrone, Just Bought A Few More Shares

By
Simply Wall St
Published
November 30, 2021
ASX:DGH
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Phil Montrone, the MD, CEO & Executive Director of Desane Group Holdings Limited (ASX:DGH) recently shelled out AU$122k to buy stock, at AU$1.22 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Desane Group Holdings

Desane Group Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by MD, CEO & Executive Director Phil Montrone was not their only acquisition of Desane Group Holdings shares this year. Earlier in the year, they paid AU$1.22 per share in a AU$140k purchase. So it's clear an insider wanted to buy, at around the current price, which is AU$1.22. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Desane Group Holdings insiders decided to buy shares at close to current prices.

In the last twelve months Desane Group Holdings 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. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
ASX:DGH Insider Trading Volume November 30th 2021

Desane Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Desane Group Holdings insiders own about AU$19m worth of shares. That equates to 39% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Desane Group Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Desane Group Holdings we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 6 warning signs for Desane Group Holdings (of which 1 is potentially serious!) you should know about.

But note: Desane Group Holdings 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, but not derivative transactions.

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