DeepVerge plc (LON:DVRG) drops to UK£60m and insiders who purchased earlier this year lose another UK£9.5k

By
Simply Wall St
Published
September 17, 2021
AIM:DVRG
Source: Shutterstock

Insiders who acquired UK£78k worth of DeepVerge plc's (LON:DVRG) stock at an average price of UK£0.31 in the past 12 months may be dismayed by the recent 11% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth UK£68k which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for DeepVerge

The Last 12 Months Of Insider Transactions At DeepVerge

The CEO & Director, Gerard Brandon, made the biggest insider sale in the last 12 months. That single transaction was for UK£62k worth of shares at a price of UK£0.32 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of UK£0.27. So it may not shed much light on insider confidence at current levels. Gerard Brandon was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 252.90k shares for UK£78k. But they sold 194.94k shares for UK£62k. In the last twelve months there was more buying than selling by DeepVerge insiders. 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!

insider-trading-volume
AIM:DVRG Insider Trading Volume September 17th 2021

DeepVerge 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 DeepVerge

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 16% of DeepVerge shares, worth about UK£9.6m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At DeepVerge Tell Us?

It doesn't really mean much that no insider has traded DeepVerge shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think DeepVerge insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for DeepVerge you should be aware of, and 3 of these can't be ignored.

Of course DeepVerge may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

If you decide to trade DeepVerge, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.