Those following along with Dun & Bradstreet Holdings, Inc. (NYSE:DNB) will no doubt be intrigued by the recent purchase of shares by Anthony Jabbour, CEO & Director of the company, who spent a stonking US$998k on stock at an average price of US$23.26. While that only increased their holding size by 7.5%, it is still a big swing by our standards.
Dun & Bradstreet Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by CEO & Director Anthony Jabbour was not the only time they bought Dun & Bradstreet Holdings shares this year. They previously made an even bigger purchase of US$4.4m worth of shares at a price of US$22.00 per share. So it's clear an insider wanted to buy, at around the current price, which is US$23.49. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Dun & Bradstreet Holdings insiders decided to buy shares at close to current prices.
Dun & Bradstreet Holdings insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. 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).
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Dun & Bradstreet Holdings insiders own 2.7% of the company, currently worth about US$271m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Dun & Bradstreet Holdings Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Dun & Bradstreet Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dun & Bradstreet Holdings. In terms of investment risks, we've identified 1 warning sign with Dun & Bradstreet Holdings and understanding this should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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