Will insiders be tempted to buy more DBD at the new 52 week low?

IIn Wednesday’s trading, shares of Diebold Nixdorf Inc (Ticker: DBD) hit a new 52-week low at $7.53/share. This is a decline of $9.77 in the share price, a decline of -56.47% from the 52-week high of $17.30 recorded on 03/16/2021. Big percentage drops still require the stock to post even bigger percentage gains from the low in order to reclaim the old price level, and for DBD that means the stock would need to gain 129.75% to return to the 52-week high. For a move like that, Diebold Nixdorf Inc would need a fundamental strength at the enterprise level.

Here’s a rhetorical question: Who knows more about company-level fundamentals than company insiders? So let’s take a look to see if any company insiders took the other side of the trade as DBD shares sold off at this new 52-week low, focusing on the last six-month period. . As summarized in the table below, DBD has seen 2 different instances of insider buying in the past six months.

Bought Initiated Title Shares Price/Share Assess
15/11/2021 Arthur F. Anton Director 20,000 $8.97 $179,330.00
15/11/2021 Matthew Goldfarb Director 8,000 $8.95 $71,630.00

In the short term, while the new 52-week low suggests the stock is at the cheapest price and therefore possibly the best deal it has been in the past 52 weeks, the weak print also means that anyone bought the stock during this period is facing an unrealized loss. Often this factor determines a stock’s technical analysis parameters by creating general resistance, with investors who bought higher now eager to reverse their trade once they break even. The chart below shows where DBD has traded over the past year, with the 50 and 200 day moving averages included.

Time will tell if insider buying predicts a future rebound for DBD shares, which are currently posting a final trade of $7.71/share, slightly above the new 52-week low.

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