The DGL Group Ltd (ASX: DGL) share price is heading north during early trade on Friday morning.
This comes after an important insider recently decided to pick up a big parcel of additional shares in the company.
Founded in 1999 by CEO Simon Henry, DGL manufactures, transports and processes chemicals and hazardous waste.
At the time of writing, the DGL share price is $3.09, up 3.34%.
Founder tops up his DGL shareholdings
In a statement released yesterday afternoon, DGL revealed that Henry recently bought a large parcel of shares.
Henry picked up 500,000 DGL shares through an on-market acquisition between 11 March and 16 March.
The value of his latest purchase is $1.43 million or an average price of $2.86 per DGL share.
This means that the co-founder/CEO now owns almost 150.92 million fully paid ordinary DGL shares.
DGL to join All Ords index on Monday
It appears Henry believes the DGL share price is a bargain. Perhaps this is because the company is about to join the All Ordinaries Index (ASX: XAO).
The S&P Dow Jones Indices announced changes in its quarterly rebalance of the S&P/ASX Indices earlier this month.
The All Ords is comprised of the 500 largest ASX companies based on market capitalisation.
Most fund managers are required to adhere to strict in-house guidelines, such as only buying shares within a certain index. Plus, exchange-traded funds (EFTs) also pick up or dump shares to keep in line with their index benchmarks.
So, it’s a big advantage for companies when they grow large enough to enter a major index such as the All Ords or S&P/ASX 200 Index (ASX: XJO).
The All Ords changeover will take place on Monday 21 March.
DGL share price snapshot
DGL commenced trading on the ASX in May 2021 after an oversubscribed initial public offering (IPO). The IPO raised $100 million through the issuance of 100 million shares at a price of $1 per share.
The DGL share price moved in circles before gaining good traction in July last year. DGL shares are now trading 209% higher than their IPO price today.
DGL commands a market capitalisation of roughly $833 million.
The post The DGL (ASX:DGL) share price has soared 200% in less than a year, but this insider is still buying up big appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended DGL Group Limited. The Motley Fool Australia has recommended DGL Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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