dorsaVi Decline Means Insider Profits Down To AU$99k

Insiders who bought dorsaVi Ltd (ASX:DVL) stock lover the last 12 months are probably not as affected by last week’s 13% loss. After accounting for the recent loss, the AU$401.0k worth of shares they purchased is now worth AU$500.2k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for dorsaVi

dorsaVi Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Sufian Ahmad for AU$250k worth of shares, at about AU$0.01 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.013. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Sufian Ahmad bought a total of 38.48m shares over the year at an average price of AU$0.01. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

dorsaVi is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of dorsaVi

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. dorsaVi insiders own about AU$3.2m worth of shares (which is 41% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About dorsaVi Insiders?

The fact that there have been no dorsaVi insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, dorsaVi insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that dorsaVi is showing 4 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

But note: dorsaVi may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.