The DGL Group Ltd (ASX: DGL) share price is on the move again today.
After hitting a 52-week low of $1.45 yesterday, the chemical company's shares surged 11.99% to finish at $1.635.
However, the rally hasn't stopped with the share up another 8.26% rise today to $1.77.
This means DGL shares have now risen by 20% over the last couple of days.
DGL founder takes advantage of share price weakness
Investors appear to be in unison with the company's founder, taking advantage of the recent DGL share price weakness.
On 2 September, the company's founder Simon Henry boosted his holdings in DGL after the share tanked around 50% in the days prior.
According to the release, Henry acquired 318,000 DGL shares through an on-market trade at an average price of $1.573 per share.
This equates to just over half a million dollars, with Henry now owning roughly 151.24 million DGL shares.
The last time Henry bought DGL shares was in mid-March of this year, spending $1.4 million to buy 500,000 shares.
It seems that Henry believes that DGL shares are grossly undervalued despite the company delivering a strong full-year result.
Clearly, the market had been expecting more from DGL regardless of booking an underlying net profit after tax (NPAT) of $33.6 million, up 197% on FY2021.
DGL share price snapshot
With DGL shares down 43.5% in 2022, they are now trading at lows not seen since July 2021.
If momentum can hold, the share could reach back up to the $2.50 mark based on the next resistance level.
On valuation grounds, DGL presides a market capitalisation of $458.2 million.
