Investors who take an interest in Dubber Corporation Limited (ASX:DUB) should definitely note that the Head of Finance, Peter Pawlowitsch, recently paid AU$0.015 per share to buy AU$585k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 155%.
View our latest analysis for Dubber
Notably, that recent purchase by Peter Pawlowitsch is the biggest insider purchase of Dubber shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (AU$0.021), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Dubber insiders were buying shares, but not selling. Their average price was about AU$0.022. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Dubber insiders own about AU$2.4m worth of shares (which is 13% of the company). We do generally prefer see higher levels of insider ownership.
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Dubber insiders are expecting a bright 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. To that end, you should learn about the 4 warning signs we've spotted with Dubber (including 3 which are potentially serious).
But note: Dubber 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.
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