De.mem Insiders Land Bargain With Gains Of AU$190k

Insiders who purchased De.mem Limited (ASX:DEM) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of AU$800.0k is now worth AU$990.3k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for De.mem

The Last 12 Months Of Insider Transactions At De.mem

The Director Andreas de Wit made the biggest insider purchase in the last 12 months. That single transaction was for AU$500k worth of shares at a price of AU$0.09 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.12), we still think insider buying is a positive. 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.

In the last twelve months De.mem 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does De.mem Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that De.mem insiders own about AU$3.8m worth of shares (which is 11% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About De.mem Insiders?

The fact that there have been no De.mem insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think De.mem insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for De.mem that deserve your attention before buying any shares.

But note: De.mem 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.

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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.