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Insiders who purchased Dr. Martens plc (LON:DOCS) stock last year recover some losses which currently stand at UK£480

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Some of the losses seen by insiders who purchased UK£100k worth of Dr. Martens plc (LON:DOCS) shares over the past year were recovered after the stock increased by 7.0% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled UK£480 since the time of purchase.

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.

Check out our latest analysis for Dr. Martens

The Last 12 Months Of Insider Transactions At Dr. Martens

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Robyn Perriss for UK£84k worth of shares, at about UK£4.20 per share. That means that even when the share price was higher than UK£4.14 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Dr. Martens insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
insider-trading-volume

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).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dr. Martens insiders own 7.4% of the company, currently worth about UK£308m 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 Dr. Martens Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Dr. Martens insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dr. Martens. In terms of investment risks, we've identified 3 warning signs with Dr. Martens and understanding them should be part of your investment process.

But note: Dr. Martens 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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