A Direct Line Insurance Group plc (LON:DLG) insider increased their holdings by 165% last year

Looking at Direct Line Insurance Group plc’s (LON:DLG ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Direct Line Insurance Group

Direct Line Insurance Group Insider Transactions Over The Last Year

The Independent Non-Executive Chairman Danuta Gray made the biggest insider purchase in the last 12 months. That single transaction was for UK£51k worth of shares at a price of UK£3.12 each. That means that even when the share price was higher than UK£2.47 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Danuta Gray.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
LSE: DLG Insider Trading Volume June 23rd 2022

Direct Line Insurance Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Direct Line Insurance Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£3.0m worth of Direct Line Insurance Group stock, about 0.09% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Direct Line Insurance Group Tell Us?

There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. We’d like to see bigger individual holdings. However , we don’t see anything to make us think Direct Line Insurance Group insiders are doubting the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Direct Line Insurance Group. Every company has risks, and we ‘ve spotted 1 warning sign for Direct Line Insurance Group you should know about.

Of course Direct Line Insurance Group 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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