Yahoo Finance Dunelm Group plc (LON:DNLM) insiders placed bullish bets worth UK£804k in the last 12 months
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Dunelm Group plc (LON:DNLM), that sends out a positive message to the company's shareholders.
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.
Check out our latest analysis for Dunelm Group
The Last 12 Months Of Insider Transactions At Dunelm Group
Over the last year, we can see that the biggest insider sale was by the CEO & Executive Director, Nick Wilkinson, for UK£437k worth of shares, at about UK£9.27 per share. That means that an insider was selling shares at slightly below the current price (UK£11.35). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 11% of Nick Wilkinson's holding. The only individual insider seller over the last year was Nick Wilkinson.
Over the last year, we can see that insiders have bought 90.38k shares worth UK£804k. But insiders sold 47.10k shares worth UK£437k. In the last twelve months there was more buying than selling by Dunelm Group insiders. Their average price was about UK£8.89. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Dunelm Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Dunelm Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Dunelm Group insiders own 25% of the company, currently worth about UK£572m based on the recent share price. 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?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Dunelm Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dunelm Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Dunelm Group.
Of course Dunelm Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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