Yahoo Finance Andrew Harrison Is The Independent Chairman of the Board of Dunelm Group plc (LON:DNLM) And They Just Picked Up 7.3% More Shares
Investors who take an interest in Dunelm Group plc (LON:DNLM) should definitely note that the Independent Chairman of the Board, Andrew Harrison, recently paid UK£7.48 per share to buy UK£248k worth of the stock. Although the purchase only increased their holding by 7.3%, it is still a solid purchase in our view.
See our latest analysis for Dunelm Group
Dunelm Group Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman of the Board Andrew Harrison was not the only time they bought Dunelm Group shares this year. Earlier in the year, they paid UK£10.55 per share in a UK£298k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£7.83). 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 Dunelm Group insiders were buying shares, but not selling. The average buy price was around UK£8.68. This is nice to see since it implies that insiders might see value around current prices. 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!
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 Of Dunelm Group
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. 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's great to see that Dunelm Group insiders own 25% of the company, worth about UK£394m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Dunelm Group Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Dunelm Group. Looks promising! 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. Be aware that Dunelm Group is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
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.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here