Have Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) Insiders Been Selling Their Stock?

We'd be surprised if Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) shareholders haven't noticed that the CFO & Treasurer, Thomas Line, recently sold US$266k worth of stock at US$178 per share. However, the silver lining is that the sale only reduced their total holding by 7.1%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Diamond Hill Investment Group

The Last 12 Months Of Insider Transactions At Diamond Hill Investment Group

In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board & Lead Independent Director James Laird bought US$290k worth of shares at a price of US$145 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$178. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid US$510k for 3.56k shares. On the other hand they divested 2.50k shares, for US$387k. In total, Diamond Hill Investment Group insiders bought more than they sold over the last year. 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!

Diamond Hill Investment Group 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.

Insider Ownership of Diamond Hill Investment Group

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.8% of Diamond Hill Investment Group shares, worth about US$20m. 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 Diamond Hill Investment Group Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Diamond Hill Investment Group we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Diamond Hill Investment Group.

But note: Diamond Hill Investment Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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. 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.
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