DroneShield CEO, MD & Executive Director Oleg Vornik Sells 100% Of Holding

We wouldn't blame DroneShield Limited (ASX:DRO) shareholders if they were a little worried about the fact that Oleg Vornik, the CEO, MD & Executive Director recently netted about AU$49m selling shares at an average price of AU$3.34. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

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DroneShield Insider Transactions Over The Last Year

Notably, that recent sale by Oleg Vornik is the biggest insider sale of DroneShield shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$2.25. So it is hard to draw any strong conclusion from it.

Insiders in DroneShield didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for DroneShield

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. DroneShield insiders own about AU$166m worth of shares (which is 8.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The DroneShield Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DroneShield. Be aware that DroneShield is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

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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.

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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.