Yahoo Finance A number of insiders bought DFS Furniture plc (LON:DFS) stock last year, which is great news for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in DFS Furniture plc's (LON:DFS) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for DFS Furniture
DFS Furniture Insider Transactions Over The Last Year
The Senior Independent Non-Executive Director Alison Hutchinson made the biggest insider purchase in the last 12 months. That single transaction was for UK£74k worth of shares at a price of UK£2.16 each. That means that even when the share price was higher than UK£1.57 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
DFS Furniture insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£1.86 on average. 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. By clicking on the graph below, you can see the precise details of each insider transaction!
DFS Furniture is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At DFS Furniture Have Bought Stock Recently
There was some insider buying at DFS Furniture over the last quarter. Independent Non-Executive Chairman Stephen Johnson purchased UK£38k worth of shares in that period. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does DFS Furniture Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests DFS Furniture insiders own 0.4% of the company, worth about UK£1.5m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.
So What Does This Data Suggest About DFS Furniture Insiders?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if DFS Furniture insiders bought more shares in the company. 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. Every company has risks, and we've spotted 2 warning signs for DFS Furniture you should know about.
Of course DFS Furniture 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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