Insider Stock Buying Reaches US$1.21m On DENTSPLY SIRONA

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in DENTSPLY SIRONA Inc.'s (NASDAQ:XRAY) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for DENTSPLY SIRONA

DENTSPLY SIRONA Insider Transactions Over The Last Year

The Independent Chairman Gregory Lucier made the biggest insider purchase in the last 12 months. That single transaction was for US$314k worth of shares at a price of US$31.44 each. That means that an insider was happy to buy shares at above the current price of US$23.31. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months DENTSPLY SIRONA insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

DENTSPLY SIRONA is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At DENTSPLY SIRONA Have Bought Stock Recently

Over the last quarter, DENTSPLY SIRONA insiders have spent a meaningful amount on shares. Independent Chairman Gregory Lucier spent US$200k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. DENTSPLY SIRONA insiders own about US$34m worth of shares. That equates to 0.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At DENTSPLY SIRONA Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of DENTSPLY SIRONA we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DENTSPLY SIRONA. In terms of investment risks, we've identified 1 warning sign with DENTSPLY SIRONA and understanding it should be part of your investment process.

But note: DENTSPLY SIRONA 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.