Bullish Domino's Pizza Enterprises Insiders Loaded Up On AU$5.11m Of Stock

Multiple insiders secured a larger position in Domino's Pizza Enterprises Limited (ASX:DMP) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Domino's Pizza Enterprises Insider Transactions Over The Last Year

The Executive Chairman of the Board Jack Cowin made the biggest insider purchase in the last 12 months. That single transaction was for AU$5.1m worth of shares at a price of AU$15.11 each. We do like to see buying, but this purchase was made at well below the current price of AU$22.26. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Domino's Pizza Enterprises insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Domino's Pizza Enterprises

Domino's Pizza Enterprises is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Domino's Pizza Enterprises insiders own about AU$104m worth of shares. That equates to 4.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Domino's Pizza Enterprises Insiders?

It doesn't really mean much that no insider has traded Domino's Pizza Enterprises shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Domino's Pizza Enterprises insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Domino's Pizza Enterprises (1 is a bit unpleasant!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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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.