Yahoo Finance Independent Non-Executive Chairman Michael Blakiston Just Bought 194% More Shares In Develop Global Limited (ASX:DVP)
Even if it's not a huge purchase, we think it was good to see that Michael Blakiston, the Independent Non-Executive Chairman of Develop Global Limited (ASX:DVP) recently shelled out AU$50k to buy stock, at AU$2.10 per share. Even though that isn't a massive buy, it did increase their holding by 194%, which is arguably a good sign.
View our latest analysis for Develop Global
The Last 12 Months Of Insider Transactions At Develop Global
In fact, the recent purchase by Michael Blakiston was the biggest purchase of Develop Global 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 AU$2.04. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Michael Blakiston was the only individual insider to buy during the last year.
Michael Blakiston purchased 35.48k shares over the year. The average price per share was AU$2.40. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Develop Global
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. Insiders own 19% of Develop Global shares, worth about AU$61m. 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 Develop Global Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Develop Global we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for Develop Global you should be aware of, and 2 of them shouldn't be ignored.
Of course Develop Global 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.
