a profit of AU$472,000 on a purchase of AU$1.5m

Insiders who bought Domain Holdings Australia Limited (ASX: DHG) 12-month equity fans probably aren’t as affected by last week’s 3.7% loss. Even after taking into account the recent loss, the shares bought for A$1.5 million are now worth A$2.0 million, or in other words, their investment is still giving good returns.

While insider trading isn’t the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider trading altogether.

Check out our latest analysis for Domain Holdings Australia

Domain Holdings Australia Insider Trading Over the Last Year

In the past twelve months, the largest single insider purchase was when non-executive chairman Nicholas Falloon bought A$1.5 million worth of shares at A$2.61 per share. Even though the purchase was made at a significantly lower price than the recent price (A$3.42), we still believe that insider buying is a positive. Because the stock was purchased at a lower price, this particular purchase tells us little about what insiders think of the stock’s current price.

Domain Holdings Australia insiders may have bought shares in the past year, but they haven’t sold any. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!

volume-of-insider-trading

There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.

Domain Holdings Australia insiders recently bought shares

Over the past quarter, insiders at Domain Holdings Australia have spent a significant amount on shares. Specifically, non-executive chairman Nicholas Falloon bought A$1.5 million worth of shares around this time, and we saw no sales. This could be interpreted as suggesting a positive outlook.

Insider ownership of Domain Holdings Australia

Many investors like to check how much a company is owned by insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the company for the long term. Based on our data, insiders at Domain Holdings Australia own around 0.3% of the stock, worth around AU$5.6 million. I generally like to see higher levels of ownership.

So what do Domain Holdings Australia’s insider trading indicate?

Good to see the recent insider buying. We also rely on the longer-term picture of insider trading. We would certainly prefer to see higher levels of insider ownership, but analysis of insider trading suggests that insiders at Domain Holdings Australia are expecting a bright future. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. You would be interested to know that we have found 1 warning sign for Domain Holdings Australia and we suggest you take a look.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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