Insider Spends AU$3.0m Buying More Shares In Domino's Pizza Enterprises
Domino's Pizza Enterprises Limited (ASX:DMP) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman, Jack Cowin, recently bought a whopping AU$3.0m worth of stock, at a price of AU$19.99. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 18%.
The Last 12 Months Of Insider Transactions At Domino's Pizza Enterprises
Notably, that recent purchase by Non-Executive Chairman Jack Cowin was not the only time they bought Domino's Pizza Enterprises shares this year. They previously made an even bigger purchase of AU$3.1m worth of shares at a price of AU$17.97 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$20.09. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Jack Cowin purchased 320.00k shares over the year. The average price per share was AU$18.91. 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!
Check out our latest analysis for Domino's Pizza Enterprises
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Domino's Pizza Enterprises Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Domino's Pizza Enterprises insiders own 5.3% of the company, worth about AU$100m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Domino's Pizza Enterprises Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Domino's Pizza Enterprises. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Domino's Pizza Enterprises. For example - Domino's Pizza Enterprises has 2 warning signs we think you should be aware of.
But note: Domino's Pizza Enterprises 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.