Diebold Nixdorf, Incorporated (NYSE:DBD) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 12% decline in the stock price. After taking the recent loss into consideration, the US$709.7k worth of stock they bought is now worth US$950.4k, indicating that their investment yielded a positive return.
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.
Diebold Nixdorf Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Arthur Anton for US$232k worth of shares, at about US$23.33 per share. Even though the purchase was made at a significantly lower price than the recent price (US$41.05), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Diebold Nixdorf insiders were buying shares, but not selling. The average buy price was around US$30.65. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Diebold Nixdorf Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Diebold Nixdorf. insider Frank Baur purchased US$47k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Diebold Nixdorf Boast High 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. Our data indicates that Diebold Nixdorf insiders own about US$8.7m worth of shares (which is 0.5% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Diebold Nixdorf Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Diebold Nixdorf insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Diebold Nixdorf (1 is potentially serious!) and we strongly recommend you look at them before investing.
Of course Diebold Nixdorf may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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.
