Don't Ignore The Insider Selling In De'Longhi

Some De'Longhi S.p.A. (BIT:DLG) shareholders may be a little concerned to see that the Vice Chairman & CEO, Fabio de' Longhi, recently sold a substantial €987k worth of stock at a price of €32.91 per share. However, that sale only accounted for 9.3% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for De'Longhi

The Last 12 Months Of Insider Transactions At De'Longhi

In fact, the recent sale by Fabio de' Longhi was the biggest sale of De'Longhi shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of €32.02. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of De'Longhi

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that De'Longhi insiders own 54% of the company, worth about €2.6b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At De'Longhi Tell Us?

An insider sold De'Longhi shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 found 2 warning signs for De'Longhi that deserve your attention before buying any shares.

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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.