Digital Media Solutions, Inc. (NYSE:DMS) insiders placed bullish bets worth US$53m in the last 12 months
In the last year, multiple insiders have substantially increased their holdings of Digital Media Solutions, Inc. (NYSE:DMS) stock, indicating that insiders' optimism about the company's prospects has increased.
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 Digital Media Solutions
Digital Media Solutions Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Lyndon Lea for US$53m worth of shares, at about US$9.49 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.08). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Digital Media Solutions insiders were buying shares, but not selling. 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!
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 Digital Media Solutions
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Digital Media Solutions insiders own 1.4% of the company, worth about US$6.0m. We do generally prefer see higher levels of insider ownership.
So What Do The Digital Media Solutions Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Digital Media Solutions shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Digital Media Solutions 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. To that end, you should learn about the 3 warning signs we've spotted with Digital Media Solutions (including 1 which makes us a bit uncomfortable).
But note: Digital Media Solutions 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.
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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