Read This Before Selling Deltex Medical Group plc (LON:DEMG) Shares
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Deltex Medical Group plc (LON:DEMG).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Deltex Medical Group
Deltex Medical Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman Nigel Keen bought UK£98k worth of shares at a price of UK£0.011 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.015. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Nigel Keen bought a total of 10.7m shares over the year at an average price of UK£0.011. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, 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.
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. We usually like to see fairly high levels of insider ownership. It appears that Deltex Medical Group insiders own 30% of the company, worth about UK£2.1m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Deltex Medical Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Deltex Medical Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Deltex Medical Group and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in Deltex Medical Group, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
