Dine Brands Global, Inc.'s (NYSE:DIN) stock rose 10% last week, but insiders who sold US$53k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$45.47, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Our free stock report includes 3 warning signs investors should be aware of before investing in Dine Brands Global. Read for free now.The Last 12 Months Of Insider Transactions At Dine Brands Global
The Independent Director, Michael Hyter, made the biggest insider sale in the last 12 months. That single transaction was for US$53k worth of shares at a price of US$45.47 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$22.57). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Michael Hyter.
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!
Check out our latest analysis for Dine Brands Global
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of Dine Brands Global
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. 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 Dine Brands Global insiders own 3.4% of the company, worth about US$11m. 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 Do The Dine Brands Global Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Dine Brands Global shares in the last quarter. Still, the insider transactions at Dine Brands Global in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dine Brands Global. For example, Dine Brands Global has 3 warning signs (and 1 which is potentially serious) we think you should know about.
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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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.