We wouldn't blame Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) shareholders if they were a little worried about the fact that James Laird, the Chairman of the Board & Lead Independent Director recently netted about US$843k selling shares at an average price of US$169. That's a big disposal, and it decreased their holding size by 20%, which is notable but not too bad.
Diamond Hill Investment Group Insider Transactions Over The Last Year
In fact, the recent sale by James Laird was the biggest sale of Diamond Hill Investment Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$168. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year, we can see that insiders have bought 1.45k shares worth US$208k. On the other hand they divested 17.25k shares, for US$2.8m. Over the last year we saw more insider selling of Diamond Hill Investment Group shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Diamond Hill Investment Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Diamond Hill Investment Group insiders own about US$20m worth of shares. That equates to 4.6% of the company. 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 Diamond Hill Investment Group Tell Us?
Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Diamond Hill Investment Group makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Diamond Hill Investment Group. At Simply Wall St, we've found that Diamond Hill Investment Group has 3 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
But note: Diamond Hill Investment Group 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
