Insider Spends AU$176k Buying More Shares In Diversified United Investment

Diversified United Investment Limited (ASX:DUI), a listed investment company with a portfolio size of AU$1.4 billion, has seen one of its Non-Executive Directors, Anthony Burgess, recently purchase AU$176k worth of shares at AU$5.35 each. This purchase, which increased his holding by 1.8%, is the largest insider purchase of DUI shares in the last year. The purchase price was higher than the current share price of AU$5.20, indicating that Burgess has confidence in the company's future prospects.

DUI invests in Australian and international equities, listed property trusts, and exchange traded index funds. The company seeks to provide income and capital appreciation over the longer term to its shareholders. DUI has a long history of paying reliable fully franked dividends, having maintained or increased its dividends paid per share every year since 1994. The latest dividend, the final dividend for the year ended 30 June 2024, was 9.0 cents per share, fully franked.

The purchase by Anthony Burgess aligns with the company's recent financial performance and market trends. In the 2024 financial year, DUI's earnings were 36.03 million, a decrease of -15.89% compared to the previous year. However, the company's earnings have remained relatively stable, indicating that it is managing its costs effectively. The company's share price has been relatively stable over the past year, with a 52-week high of 5.40 and a 52-week low of 4.80. The share price has been trading within this range, indicating that the market has a positive outlook on the company's prospects.

The purchase by Anthony Burgess suggests that he has confidence in the company's future prospects and believes that the shares are undervalued at the current price. By purchasing shares at a higher price than the current market price, Burgess is indicating that he is willing to pay a premium for the company's shares, which can be seen as a vote of confidence in the company's long-term prospects. This decision may also suggest that Burgess believes that the company's fundamentals are strong and that the current share price does not fully reflect the company's true value.

In conclusion, the insider purchase by Anthony Burgess aligns with the company's recent financial performance and market trends, indicating that the company is managing its costs effectively, generating sufficient cash flow to support its dividend payments, and has a positive outlook on its future prospects. The purchase by Burgess suggests that he has confidence in the company's future prospects and believes that the shares are undervalued at the current price.