By selling worth £ 1.3 million DS Smith Plc (LON: SMDS) stocks at an average selling price of £ 4.38 last year, insiders appeared to have made the most of their holdings. The company’s market value dropped £ 228 million after its share price fell 4.3% last week, but insiders were able to mitigate their losses.
While insider trading is not the most important thing when it comes to long-term investing, we think it is foolish to completely ignore insider trading.
Check out our latest analysis for DS Smith
The last 12 months of DS Smith insider trading
The insider’s biggest single sale in the past twelve months was when Group Finance Director & Executive Director, Adrian R. Marsh, sold £ 1.3m worth of stock at £ 4.42 per share. While inside selling is negative, it is more negative for us if the stocks are being sold at a lower price. The silver lining is that this sell-off was above last price (UK £ 3.69). So it may not shed much light on insider confidence at its current level. Adrian R. Marsh was the only single insider to sell in the last year. Notably, Adrian R. Marsh was also the largest buyer, having bought £ 214,000 worth of shares.
You can see insider transactions (by companies and individuals) over the past year in the graph below. If you click on the graphic below, you can see the exact details of each Insider Transaction!
I’ll like DS Smith better when I see some big inside buying. While we wait, take a look at this for free List of growing companies with significant insider buying recently.
DS Smith inside property
Looking at total insider holdings in a company can help you make your assessment of whether they are well-aligned with the common stockholders. A high proportion of insiders often means that management takes greater account of the interests of shareholders. Insiders own 0.2% of DS Smith shares, valued at approximately £ 10.0 million. We have certainly found a higher proportion of insider ownership elsewhere, but these holdings are sufficient to suggest a match between insiders and the other shareholders.
So what do the DS Smith insider deals show?
We certainly don’t mind that there haven’t been any DS Smith Insider deals recently. We don’t take much encouragement from the deals from DS Smith insiders. We also find that, as far as we can tell, the percentage of insiders is relatively low compared to other companies. So it is helpful to know what insiders are doing in relation to buying or selling, but it is also helpful to know the risks a particular company is facing. Every company has risks and we discovered them 4 warning signs for DS Smith you should know.
Naturally DS Smith may not be the best stock to buy. You might want to see this for free Collection of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the competent supervisory authority. We currently account for open market transactions and private dispositions, but no derivative transactions.
This article from Simply Wall St is of a general nature. We only provide comments based on historical data and analyst projections using an unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in any of the stocks mentioned.
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