dorsaVi's Stock Sinks To AU$0.009, But Insiders Sold Even Lower

Even though dorsaVi Ltd (ASX:DVL) has fallen by 10.0% over the past week , insiders who sold AU$700k worth of stock over the past year have had less luck. Given that the average selling price of AU$0.012 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for dorsaVi

dorsaVi Insider Transactions Over The Last Year

The insider, Sufian Ahmad, made the biggest insider sale in the last 12 months. That single transaction was for AU$700k worth of shares at a price of AU$0.013 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$0.009. So it is hard to draw any strong conclusion from it. Sufian Ahmad was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 41.36m shares worth AU$498k. But insiders sold 60.03m shares worth AU$700k. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

dorsaVi Insiders Bought Stock Recently

It's good to see that dorsaVi insiders have made notable investments in the company's shares. Overall, three insiders shelled out AU$95k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. dorsaVi insiders own about AU$2.6m worth of shares (which is 40% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At dorsaVi Tell Us?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by some insiders , along with high insider ownership, suggest that dorsaVi insiders are fairly aligned, and optimistic. While it's good to be aware of 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. Case in point: We've spotted 4 warning signs for dorsaVi you should be aware of, and 2 of these are concerning.

Of course dorsaVi may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.