As DigitalBridge Group, Inc.'s market cap (NYSE:DBRG) drops to US$2.0b, insiders might be questioning their decision to buy earlier this year

The recent price decline of 5.2% in DigitalBridge Group, Inc.'s (NYSE:DBRG) stock may have disappointed insiders who bought US$1.1m worth of shares at an average price of US$16.57 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$754k, which is not great.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for DigitalBridge Group

The Last 12 Months Of Insider Transactions At DigitalBridge Group

Over the last year, we can see that the biggest insider purchase was by CEO & Director Marc Ganzi for US$498k worth of shares, at about US$17.83 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$11.51). 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. 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.

DigitalBridge Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that DigitalBridge Group insiders own 1.5% of the company, worth about US$30m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About DigitalBridge Group Insiders?

It doesn't really mean much that no insider has traded DigitalBridge Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in DigitalBridge Group and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DigitalBridge Group. For example - DigitalBridge Group has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.