When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Douglas Elliman Inc.’s (NYSE:DOUG) instance, it’s good news for shareholders.
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.
View our latest analysis for Douglas Elliman
The Last 12 Months Of Insider Transactions At Douglas Elliman
In the last twelve months, the biggest single purchase by an insider was when Chairman Howard Lorber bought US$399k worth of shares at a price of US$3.99 per share. Even though the purchase was made at a significantly lower price than the recent price (US$4.72), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
In the last twelve months Douglas Elliman insiders were buying shares, but not selling. They paid about US$4.91 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Douglas Elliman
Many investors like to check how much of a company is owned by 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. Douglas Elliman insiders own about US$64m worth of shares. That equates to 17% of the company. 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 Douglas Elliman Tell Us?
It doesn’t really mean much that no insider has traded Douglas Elliman shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Douglas Elliman and their transactions don’t cause us concern. 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. Case in point: We’ve spotted 2 warning signs for Douglas Elliman you should be aware of.
But note: Douglas Elliman 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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