Insiders Sold Discovery Alaska Prematurely At AU$0.03 With Stock Trading Higher

Despite the fact that Discovery Alaska Limited's (ASX:DAF) value has dropped 12% in the last week insiders who sold AU$82k worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of AU$0.03 is still lower than the current share price.

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.

Check out our latest analysis for Discovery Alaska

The Last 12 Months Of Insider Transactions At Discovery Alaska

The insider, Graham Walker, made the biggest insider sale in the last 12 months. That single transaction was for AU$82k worth of shares at a price of AU$0.03 each. 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$0.022. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Graham Walker.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 Discovery Alaska

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Discovery Alaska insiders own 37% of the company, worth about AU$1.9m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Discovery Alaska Insiders?

It doesn't really mean much that no insider has traded Discovery Alaska shares in the last quarter. Our analysis of Discovery Alaska insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Discovery Alaska. For instance, we've identified 4 warning signs for Discovery Alaska (3 make us uncomfortable) you should be aware of.

But note: Discovery Alaska 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.