Have Insiders Been Buying D4t4 Solutions Plc (LON:D4T4) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in D4t4 Solutions Plc (LON:D4T4).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for D4t4 Solutions

The Last 12 Months Of Insider Transactions At D4t4 Solutions

The Independent Non-Executive Chairman Peter Simmonds made the biggest insider purchase in the last 12 months. That single transaction was for UK£67k worth of shares at a price of UK£1.93 each. That implies that an insider found the current price of UK£2.20 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the D4t4 Solutions insiders decided to buy shares at close to current prices.

D4t4 Solutions insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

D4t4 Solutions is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does D4t4 Solutions Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. D4t4 Solutions insiders own about UK£8.9m worth of shares. That equates to 10% of the company. 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 D4t4 Solutions Insider Transactions Indicate?

The fact that there have been no D4t4 Solutions insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if D4t4 Solutions insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - D4t4 Solutions has 1 warning sign we think you should be aware of.

Of course D4t4 Solutions 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.

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