Director of De.mem Picks Up 10% More Stock

Investors who take an interest in De.mem Limited (ASX:DEM) should definitely note that the Director, Andreas de Wit, recently paid AU$0.10 per share to buy AU$200k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 10%.

Check out our latest analysis for De.mem

The Last 12 Months Of Insider Transactions At De.mem

In fact, the recent purchase by Director Andreas de Wit was not their only acquisition of De.mem shares this year. Earlier in the year, they paid AU$0.09 per share in a AU$500k purchase. We do like to see buying, but this purchase was made at well below the current price of AU$0.14. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months De.mem insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

De.mem is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 11% of De.mem shares, worth about AU$4.4m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

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

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that De.mem insiders are reasonably well aligned, and optimistic for the 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. When we did our research, we found 3 warning signs for De.mem (1 is a bit concerning!) that we believe deserve your full attention.

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.