Insiders at Diebold Nixdorf, Incorporated (NYSE:DBD) sold US$1.8m worth of stock at an average price of US$16.35 a share over the past year, making the most of their investment. After the stock price dropped 7.4% last week, the company's market value declined by US$55m, but insiders were able to mitigate their losses.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Diebold Nixdorf Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President, Gerrard Schmid, sold US$1.7m worth of shares at a price of US$17.15 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$8.80. So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 29.00k shares for US$266k. But insiders sold 110.50k shares worth US$1.8m. In total, Diebold Nixdorf insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Diebold Nixdorf better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Diebold Nixdorf Insiders Bought Stock Recently
It's good to see that Diebold Nixdorf insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$251k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Diebold Nixdorf insiders own 6.9% of the company, worth about US$47m. 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 Diebold Nixdorf Insiders?
It is good to see recent purchasing. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Diebold Nixdorf insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. While we like knowing 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. Case in point: We've spotted 2 warning signs for Diebold Nixdorf you should be aware of, and 1 of them is a bit concerning.
But note: Diebold Nixdorf 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, but not derivative transactions.
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