Yahoo Finance Insider Buying: The Duxton Water Limited (ASX:D2O) Non-Executive Chairman Just Bought AU$2.3m Worth Of Shares
Those following along with Duxton Water Limited (ASX:D2O) will no doubt be intrigued by the recent purchase of shares by Edouard Peter, Non-Executive Chairman of the company, who spent a stonking AU$2.3m on stock at an average price of AU$1.39. Not only is that a big swing, but it increased their holding size by 17%, which is definitely great to see.
See our latest analysis for Duxton Water
Duxton Water Insider Transactions Over The Last Year
Notably, that recent purchase by Edouard Peter is the biggest insider purchase of Duxton Water shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.38). 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. We always take careful note of the price insiders pay when purchasing 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. The only individual insider to buy over the last year was Edouard Peter. Notably Edouard Peter was also the biggest seller.
Edouard Peter bought a total of 1.68m shares over the year at an average price of AU$1.39. 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 of Duxton Water
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Duxton Water insiders own 12% of the company, worth about AU$20m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Duxton Water Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Duxton Water shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Duxton Water 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.
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.
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. Thank you for reading.
