Yahoo Finance Non-Executive Director Peter Rubinstein Just Bought 9.0% More Shares In DigitalX Limited (ASX:DCC)
Investors who take an interest in DigitalX Limited (ASX:DCC) should definitely note that the Non-Executive Director, Peter Rubinstein, recently paid AU$0.063 per share to buy AU$189k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 9.0%.
Check out our latest analysis for DigitalX
DigitalX Insider Transactions Over The Last Year
Notably, that recent purchase by Peter Rubinstein is the biggest insider purchase of DigitalX shares that we've seen in the last year. That means that even when the share price was higher than AU$0.061 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months DigitalX 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. By clicking on the graph below, you can see the precise details of each insider transaction!
DigitalX is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of DigitalX
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that DigitalX insiders own about AU$6.3m worth of shares (which is 14% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About DigitalX Insiders?
The recent insider purchases are 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that DigitalX insiders are reasonably well aligned, and optimistic for the 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. At Simply Wall St, we've found that DigitalX has 5 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
