One Donegal Group Inc. (NASDAQ: DGIC.A) insider raised 81% stake in previous year
To concern Donegal Group Inc. (NASDAQ: DGIC.A) Insider trading over the past year, we can see that the insiders were net buyers. That is, there were more shares bought by insiders than sold.
While we never suggest that investors should base their decisions solely on what the directors of a company have done, we consider it foolish to ignore insider trading altogether.
Donegal Group Insider Trading in the Past Year
Over the past year, we can see that the biggest insider buy was made by independent director Barry Huber for US $ 92,000 of shares, at around US $ 15.28 per share. This means that even when the stock price was above US $ 15.05 (the recent price), an insider wanted to buy stocks. While their opinion may have changed since the purchase, it at least suggests that they have confidence in the future of the business. We always take careful note of the price insiders pay when they buy stocks. Generally speaking, this comes to our attention when an insider bought shares at prices higher than current prices, as it suggests that they thought the shares were worth buying, even at a higher price. The only individual insider to buy in the past year was Barry Huber.
The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you can see the precise detail of each insider trade!
NasdaqGS: DGIC.A Insider trading volume October 9, 2021
Donegal Group isn’t the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Insiders own 2.6% of Donegal Group shares, worth around $ 12 million. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what do the Donegal Group insider trading indicate?
The recent insider buying is encouraging. We also trust the longer term picture of insider trading. When combined with notable insider ownership, these factors suggest that Donegal Group insiders are well aligned and may think the share price is too low. While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Every business has risks, and we have spotted 2 warning signs for Donegal Group (1 of which is a bit disturbing!) that you should know about.
Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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