Insiders Buying Distribution Finance Capital Holdings Might Wish They Invested More, Stock Gains 20%

Distribution Finance Capital Holdings plc (LON:DFCH) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 20% resulting in a UK£15m addition to the company’s market value. Put another way, the original UK£62.2k acquisition is now worth UK£99.1k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Distribution Finance Capital Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Carl D'Ammassa bought UK£45k worth of shares at a price of UK£0.34 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.55. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Distribution Finance Capital Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own UK£1.0m 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. We consider this fairly low insider ownership.

So What Does This Data Suggest About Distribution Finance Capital Holdings Insiders?

It doesn't really mean much that no insider has traded Distribution Finance Capital Holdings shares in the last quarter. 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 Distribution Finance Capital Holdings insiders are doubting the company. Along with insider transactions, I recommend checking if Distribution Finance Capital Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.

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.