This Insider Has Just Sold Shares In Diamond Hill Investment Group

We wouldn't blame Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) shareholders if they were a little worried about the fact that James Laird, the Chairman of the Board & Lead Independent Director recently netted about US$843k selling shares at an average price of US$169. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Diamond Hill Investment Group

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

Notably, that recent sale by James Laird is the biggest insider sale of Diamond Hill Investment Group shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$168. 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).

Happily, we note that in the last year insiders paid US$208k for 1.45k shares. But they sold 17.25k shares for US$2.8m. In total, Diamond Hill Investment Group insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Diamond Hill Investment Group insiders own 4.6% of the company, 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.

What Might The Insider Transactions At Diamond Hill Investment Group Tell Us?

Insiders haven't bought Diamond Hill Investment Group stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Diamond Hill Investment Group is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. For example, Diamond Hill Investment Group has 3 warning signs (and 1 which can't be ignored) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.