Chairman & MD of Dangee Dums Picks Up 1,433% More Stock
Potential Dangee Dums Limited (NSE:DANGEE) shareholders may wish to note that the Chairman & MD, Nikul Patel, recently bought ₹20m worth of stock, paying ₹2.82 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 1,433%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At Dangee Dums
In fact, the recent purchase by Nikul Patel was the biggest purchase of Dangee Dums shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of ₹3.26. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
View our latest analysis for Dangee Dums
Dangee Dums is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Dangee Dums Boast High 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. We usually like to see fairly high levels of insider ownership. Dangee Dums insiders own about ₹279m worth of shares (which is 56% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Dangee Dums Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Dangee Dums. One for the watchlist, at least! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Dangee Dums is showing 2 warning signs in our investment analysis, and 1 of those is concerning...
But note: Dangee Dums 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.