Yahoo Finance Despite Deltex Medical Group's Pullback, Insiders Still Gained UK£67k
Insiders who purchased Deltex Medical Group plc (LON:DEMG) shares in the past 12 months are unlikely to be deeply impacted by the stock's 79% decline over the past week. Even after accounting for the recent loss, the UK£270k worth of stock purchased by them is now worth UK£338k or in other words, their investment continues to give good returns.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Deltex Medical Group
The Last 12 Months Of Insider Transactions At Deltex Medical Group
In fact, the recent purchase by Mark Bradshaw was the biggest purchase of Deltex Medical Group shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (UK£0.0025), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Deltex Medical Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Deltex Medical Group Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Deltex Medical Group. In total, insiders bought UK£270k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Deltex Medical Group Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Deltex Medical Group insiders own about UK£596k worth of shares (which is 13% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Deltex Medical Group Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Deltex Medical Group stock. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 5 warning signs for Deltex Medical Group (4 make us uncomfortable!) that we believe deserve your full attention.
But note: Deltex Medical 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. 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.
