Bullish insiders at Domain Holdings Australia Limited (ASX:DHG) have filled their treasuries with A$1.5m worth of shares over the past year

Over the past year, a number of insiders have significantly increased their holdings in Domain Holdings Australia Limited (ASX:DHG). This is encouraging as it indicates that insiders are more optimistic about the outlook for the company.

While insider trading isn’t the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider trading altogether.

Check out our latest analysis for Domain Holdings Australia

Last 12 months of insider trading at Domain Holdings Australia

In the past twelve months, the largest single insider purchase was when non-executive chairman Nicholas Falloon bought A$1.5 million worth of shares at A$2.61 per share. While we like to see insider buying, we note that this big buy was significantly below the recent price of AU$3.90. Because the stock was purchased at a lower price, this particular purchase tells us little about what insiders think of the stock’s current price.

Domain Holdings Australia insiders may have bought shares in the past year, but they haven’t sold any. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!

ASX: DHG Insider Trading Volume August 18, 2022

There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.

Domain Holdings Australia Insiders recently bought shares

Over the past quarter, insiders at Domain Holdings Australia have spent a significant amount on shares. Specifically, non-executive chairman Nicholas Falloon bought A$1.5 million worth of shares around this time, and we saw no sales. This is a positive point in our book because it implies a certain confidence.

Insider ownership

For an ordinary shareholder, it is worth checking how many shares are held by company insiders. I think it’s a good sign if insiders have a significant number of shares in the company. Based on our data, insiders at Domain Holdings Australia own around 0.3% of the stock, worth around AU$6.4 million. We prefer to see high levels of insider ownership.

So what does this data suggest about Domain Holdings Australia insiders?

Good to see the recent insider buying. And an analysis of last year’s transactions also gives us confidence. Although overall insider ownership levels are lower than we would like to see, trading history implies that insiders at Domain Holdings Australia are reasonably well-aligned and optimistic about the future. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. During our analysis, we found that Domain Holdings Australia had 1 warning sign and it would be unwise to ignore it.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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