Great news for Distribution Finance Capital Holdings plc (LON:DFCH): Insiders acquired stock in large numbers last year

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Distribution Finance Capital Holdings plc's (LON:DFCH) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Distribution Finance Capital Holdings

Distribution Finance Capital Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Thomas Grathwohl bought UK£100k worth of shares at a price of UK£0.40 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.35). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Distribution Finance Capital Holdings insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£0.35 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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insider-trading-volume

Distribution Finance Capital Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Distribution Finance Capital Holdings Have Bought Stock Recently

Over the last quarter, Distribution Finance Capital Holdings insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought UK£88k worth of shares. This is a positive in our book as it implies some confidence.

Does Distribution Finance Capital Holdings 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. Our information indicates that Distribution Finance Capital Holdings insiders own about UK£508k worth of shares. We might be missing something but that seems like very low insider ownership.

So What Do The Distribution Finance Capital Holdings Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Distribution Finance Capital Holdings insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Distribution Finance Capital Holdings. You'd be interested to know, that we found 1 warning sign for Distribution Finance Capital Holdings and we suggest you have a look.

Of course Distribution Finance Capital Holdings 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, but not derivative transactions.

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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.

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