Insider Stock Buyers At DSW Capital Recouped Some Losses This Week

Insiders who bought UK£163.2k worth of DSW Capital plc (LON:DSW) stock in the last year recovered part of their losses as the stock rose by 12% last week. However, total losses seen by insiders are still UK£17k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for DSW Capital

The Last 12 Months Of Insider Transactions At DSW Capital

Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director James Alexander Dow for UK£78k worth of shares, at about UK£0.53 per share. That means that even when the share price was higher than UK£0.53 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While DSW Capital insiders bought shares during the last year, they didn't sell. They paid about UK£0.59 on average. I'd consider this a positive as it suggests insiders see value at around the current 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does DSW Capital Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. DSW Capital insiders own 64% of the company, currently worth about UK£7.1m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At DSW Capital Tell Us?

It doesn't really mean much that no insider has traded DSW Capital shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, DSW Capital insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DSW Capital. Be aware that DSW Capital is showing 5 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com