From what we can see, insiders were net buyers in De La Rue plc’s (LON:DLAR ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don’t think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for De La Rue
The Last 12 Months Of Insider Transactions At De La Rue
Notably, that recent purchase by CEO & Executive Director Clive Vacher was not the only time they bought De La Rue shares this year. Earlier in the year, they paid UK£0.89 per share in a UK£40k purchase. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.47). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. To us, it’s very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Clive Vacher. Notably Clive Vacher was also the biggest seller.
Clive Vacher bought a total of 114.34k shares over the year at an average price of UK£0.66. 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.
Have De La Rue Insiders Traded Recently?
In the last quarter we saw CEO & Executive Director Clive Vacher spend UK£35k on shares. However that only slightly eclipses the sales, UK£35k worth of sales. Overall, we don’t think these recent trades are particularly informative, one way or the other.
Does De La Rue Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our information indicates that De La Rue insiders own about UK£661k worth of shares. It’s always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The De La Rue Insider Transactions Indicate?
Insider buying and selling have balanced each other out in the last three months, so we can’t deduct anything useful from these recent trades. However, our analysis of transactions over the last year is heartening. We’d like to see bigger individual holdings. However, we don’t see anything to make us think De La Rue insiders are doubting the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing De La Rue. Every company has risks, and we’ve spotted 2 warning signs for De La Rue you should know about.
But note: De La Rue 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.
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