Insiders who bought this year lost US$1.2m as DLT ASA (OB:DLTX) sheds kr62m in value

By
Simply Wall St
Published
May 12, 2022
OB:DLTX
Source: Shutterstock

Insiders who bought US$3.1m worth of DLT ASA's (OB:DLTX) stock at an average buy price of US$8.59 over the last year may be disappointed by the recent 14% decrease in the stock. 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 US$1.9m 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 do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for DLT

The Last 12 Months Of Insider Transactions At DLT

Over the last year, we can see that the biggest insider purchase was by Chief Financial Officer Magnus Nokleby for kr1.0m worth of shares, at about kr6.90 per share. That means that even when the share price was higher than kr5.31 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While DLT insiders bought shares during the last year, they didn't sell. Their average price was about kr8.59. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
OB:DLTX Insider Trading Volume May 12th 2022

DLT is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does DLT Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. 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 13% of DLT shares, worth about kr50m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At DLT Tell Us?

It doesn't really mean much that no insider has traded DLT shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in DLT and their transactions don't cause us concern. 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 6 warning signs for DLT you should be aware of.

Of course DLT 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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