Insiders who bought Dine Brands Global, Inc. (NYSE:DIN) in the last 12 months may probably not pay attention to the stock's recent 12% drop. Even after accounting for the recent loss, the US$369.8k worth of stock purchased by them is now worth US$482.1k or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Dine Brands Global Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Howard Berk for US$100k worth of shares, at about US$24.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$31.73. 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.

Dine Brands Global insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Dine Brands Global is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Dine Brands Global Have Bought Stock Recently

It's good to see that Dine Brands Global insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$120k worth of shares. This is a positive in our book as it implies some confidence.

Does Dine Brands Global Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.8% of Dine Brands Global shares, worth about US$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Dine Brands Global Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Dine Brands Global insiders are well aligned, and that they may think the share price is too low. 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.

But note: Dine Brands Global 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.

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.