Insiders Who Sold dorsaVi Missed Out On 11% Stock Increase

Even though dorsaVi Ltd (ASX:DVL) stock gained 11% last week, insiders who sold AU$700k worth of stock over the past year are probably better off. Selling at an average price of AU$0.012, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

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.

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The Last 12 Months Of Insider Transactions At dorsaVi

Over the last year, we can see that the biggest insider sale was by the insider, Sufian Ahmad, for AU$700k worth of shares, at about AU$0.013 per share. While insider selling is a negative, to us, it is more negative if the shares are sold 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$0.01. So it may not shed much light on insider confidence at current levels. Sufian Ahmad was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 41.36m shares worth AU$498k. On the other hand they divested 60.03m shares, for AU$700k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for dorsaVi

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Insider Ownership Of dorsaVi

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 40% of the company, currently worth about AU$2.9m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The dorsaVi Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of dorsaVi insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing dorsaVi. Case in point: We've spotted 4 warning signs for dorsaVi you should be aware of, and 3 of these are a bit unpleasant.

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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.