Insider Buying: The Diploma PLC (LON:DPLM) CEO & Director Just Bought UK£159k Worth Of Shares

Potential Diploma PLC (LON:DPLM) shareholders may wish to note that the CEO & Director, Jonathan Thomson, recently bought UK£159k worth of stock, paying UK£19.41 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 37%.

Check out our latest analysis for Diploma

The Last 12 Months Of Insider Transactions At Diploma

Notably, that recent purchase by CEO & Director Jonathan Thomson was not the only time they bought Diploma shares this year. Earlier in the year, they paid UK£13.50 per share in a UK£297k purchase. We do like to see buying, but this purchase was made at well below the current price of UK£19.37. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Jonathan Thomson purchased 30.17k shares over the year. The average price per share was UK£15.10. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 of Diploma

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Diploma insiders own 0.1% of the company, worth about UK£2.7m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Diploma Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Diploma insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Diploma, you should check out this free report on analyst forecasts for the company.

Of course Diploma 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.