Despite the fact that Dine Brands Global, Inc.'s (NYSE:DIN) value has dropped 11% in the last week insiders who sold US$53k worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$45.47 is still lower than the current share price.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Dine Brands Global
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Michael Hyter, sold US$53k worth of shares at a price of US$45.47 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$26.59). So it may not tell us anything about how insiders feel about the current share price. Michael Hyter was the only individual insider to sell shares in the last twelve months.
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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
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. From our data, it seems that Dine Brands Global insiders own 2.4% of the company, worth about US$9.9m. Whilst better than nothing, we're not overly impressed by these holdings.
The fact that there have been no Dine Brands Global insider transactions recently certainly doesn't bother us. The insider transactions at Dine Brands Global are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Dine Brands Global is showing 3 warning signs in our investment analysis, and 2 of those are significant...
Of course Dine Brands Global may not be the best stock to buy. So you may wish to see this free collection of high quality 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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