Insider Spends UK£45k Buying More Shares In Distribution Finance Capital Holdings

Whilst it may not be a huge deal, we thought it was good to see that the Distribution Finance Capital Holdings plc (LON:DFCH) CEO & Executive Director, Carl D'Ammassa, recently bought UK£45k worth of stock, for UK£0.34 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 21%.

We've discovered 2 warning signs about Distribution Finance Capital Holdings. View them for free.

The Last 12 Months Of Insider Transactions At Distribution Finance Capital Holdings

In fact, the recent purchase by Carl D'Ammassa was the biggest purchase of Distribution Finance Capital Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than UK£0.33 (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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Distribution Finance Capital Holdings insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Distribution Finance Capital Holdings

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 Distribution Finance Capital Holdings Boast High 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. From looking at our data, insiders own UK£623k worth of Distribution Finance Capital Holdings stock, about 1.1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Do The Distribution Finance Capital Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Distribution Finance Capital Holdings 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. At Simply Wall St, we've found that Distribution Finance Capital Holdings has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.