Yahoo Finance Insider Buying: The Digimarc Corporation (NASDAQ:DMRC) Independent Chairwoman Just Bought 41% More Shares
Investors who take an interest in Digimarc Corporation (NASDAQ:DMRC) should definitely note that the Independent Chairwoman, Alicia Syrett, recently paid US$28.60 per share to buy US$114k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 41%.
View our latest analysis for Digimarc
The Last 12 Months Of Insider Transactions At Digimarc
In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Riley McCormack bought US$37m worth of shares at a price of US$14.37 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$27.18. 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 insiders purchased 2.55m shares for US$37m. But insiders sold 45.50k shares worth US$2.2m. In the last twelve months there was more buying than selling by Digimarc insiders. The chart below shows insider transactions (by companies and individuals) over the last year. 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 growing companies that insiders are buying.
Does Digimarc Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Digimarc insiders own 26% of the company, currently worth about US$116m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Digimarc 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. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Digimarc insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Digimarc.
Of course Digimarc 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.
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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