Investors who take an interest in DSW Capital plc (LON:DSW) should definitely note that the CEO & Executive Director, James Alexander Dow, recently paid UK£0.92 per share to buy UK£82k worth of the stock. Although the purchase only increased their holding by 2.8%, it is still a solid purchase in our view.
DSW Capital Insider Transactions Over The Last Year
In fact, the recent purchase by James Alexander Dow was the biggest purchase of DSW Capital shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of UK£0.90. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. James Alexander Dow was the only individual insider to buy during the last year.
James Alexander Dow bought 104.00k shares over the last 12 months at an average price of UK£0.94. 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.
Does DSW Capital Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. DSW Capital insiders own about UK£11m worth of shares (which is 55% of the company). 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 DSW Capital Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest DSW Capital insiders are well aligned, and quite possibly think the share price is too low. That’s what I like to see! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing DSW Capital. Be aware that DSW Capital is showing 6 warning signs in our investment analysis, and 2 of those are a bit unpleasant…
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.
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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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