Independent Director Richard Cooley Just Bought 40% More Shares In Diamond Hill Investment Group, Inc. (NASDAQ:DHIL)

Potential Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) shareholders may wish to note that the Independent Director, Richard Cooley, recently bought US$213k worth of stock, paying US$142 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 40%.

View our latest analysis for Diamond Hill Investment Group

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

Over the last year, we can see that the biggest insider purchase was by Chairman of the Board & Lead Independent Director James Laird for US$307k worth of shares, at about US$123 per share. So it's clear an insider wanted to buy, at around the current price, which is US$142. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 Diamond Hill Investment Group insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 6.80k shares worth US$791k. But they sold 1.00k shares for US$121k. 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Diamond Hill Investment Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Diamond Hill Investment Group 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.2% of Diamond Hill Investment Group shares, worth about US$22m. 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 purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Diamond Hill Investment Group insiders are well aligned, and that they may think the share price is too low. 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 1 warning sign for Diamond Hill Investment Group that deserve your attention before buying any shares.

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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