Douglas Elliman Inc. (NYSE:DOUG) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 42% resulting in a US$55m addition to the company's market value. Put another way, the original US$815.3k acquisition is now worth US$1.42m.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Douglas Elliman Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Chairman of the Board Michael Liebowitz for US$233k worth of shares, at about US$1.18 per share. Even though the purchase was made at a significantly lower price than the recent price (US$2.03), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Douglas Elliman insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and 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!
Douglas Elliman is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Douglas Elliman Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Douglas Elliman insiders own 18% of the company, worth about US$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Douglas Elliman Insiders?
It doesn't really mean much that no insider has traded Douglas Elliman shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Douglas Elliman and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Douglas Elliman. At Simply Wall St, we've found that Douglas Elliman has 3 warning signs (1 makes us a bit uncomfortable!) 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.