Insider Buying: The Dicker Data Limited (ASX:DDR) COO & Executive Director Just Bought AU$69k Worth Of Shares

Even if it's not a huge purchase, we think it was good to see that Vladimir Mitnovetski, the COO & Executive Director of Dicker Data Limited (ASX:DDR) recently shelled out AU$69k to buy stock, at AU$10.63 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Dicker Data

The Last 12 Months Of Insider Transactions At Dicker Data

The Chairman & CEO David Dicker made the biggest insider purchase in the last 12 months. That single transaction was for AU$239k worth of shares at a price of AU$4.78 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$11.20. 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.

While Dicker Data insiders bought shares during the last year, they didn't sell. The average buy price was around AU$5.72. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Dicker Data 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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dicker Data insiders own 69% of the company, currently worth about AU$1.3b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Dicker Data Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Dicker Data insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Dicker Data has 4 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course Dicker Data may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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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. 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.
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