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Diversified Energy Insiders Added US$485.0k Of Stock To Their Holdings

Simply Wall St · 07/29 05:07

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Diversified Energy Company PLC's (LON:DEC) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Diversified Energy Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director David Turner bought UK£152k worth of shares at a price of UK£10.15 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£11.36), we still think insider buying is a positive. 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.

While Diversified Energy insiders bought shares during the last year, they didn't sell. The average buy price was around UK£9.04. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

View our latest analysis for Diversified Energy

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LSE:DEC Insider Trading Volume July 29th 2025

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.

Insider Ownership Of Diversified Energy

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Diversified Energy insiders own about UK£20m worth of shares. That equates to 2.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Diversified Energy Tell Us?

It doesn't really mean much that no insider has traded Diversified Energy shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Diversified Energy and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Diversified Energy has 3 warning signs (and 2 which don't sit too well with us) we think you should know about.

But note: Diversified Energy 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.