Yahoo Finance With stock up 5.5%, Insiders of Digi International Inc. (NASDAQ:DGII) must be wishing they had bought more last year
Last week, Digi International Inc. (NASDAQ:DGII) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 5.5% last week, resulting in a US$68m increase in the company's market worth. In other words, the original US$148k purchase is now worth US$264k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Digi International
The Last 12 Months Of Insider Transactions At Digi International
In the last twelve months, the biggest single purchase by an insider was when President Ronald Konezny bought US$99k worth of shares at a price of US$19.85 per share. Even though the purchase was made at a significantly lower price than the recent price (US$35.21), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 7.50k shares worth US$148k. On the other hand they divested 2.63k shares, for US$57k. In total, Digi International insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Insider Ownership Of Digi International
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. Insiders own 3.9% of Digi International shares, worth about US$49m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Digi International Tell Us?
It doesn't really mean much that no insider has traded Digi International shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Digi International and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Digi International. At Simply Wall St, we found 1 warning sign for Digi International that deserve your attention before buying any shares.
But note: Digi International 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, 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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