Bullish Diversified Energy Insiders Loaded Up On US$449k Of Stock

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Diversified Energy Company PLC (LON:DEC), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Diversified Energy

Diversified Energy Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP, Bradley Gray, sold UK£239k worth of shares at a price of UK£0.96 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£0.96. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 7.9% of Bradley Gray's holding. The only individual insider seller over the last year was Bradley Gray.

In the last twelve months insiders purchased 504.03k shares for UK£449k. On the other hand they divested 250.00k shares, for UK£239k. In total, Diversified Energy insiders bought more than they sold over the last year. 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!

Diversified Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Diversified Energy

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. It appears that Diversified Energy insiders own 3.4% of the company, worth about UK£32m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Diversified Energy Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Diversified Energy shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Diversified Energy and we see no evidence to suggest they are worried about 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 Diversified Energy has 3 warning signs (2 are 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, but not derivative transactions.

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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.