Descartes Systems Group Non-Executive Independent Chairman Eric Demirian Sells 90% Of Holding

Some The Descartes Systems Group Inc. (TSE:DSG) shareholders may be a little concerned to see that the Non-Executive Independent Chairman, Eric Demirian, recently sold a substantial CA$1.2m worth of stock at a price of CA$128 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 90% of their entire holding.

Check out our latest analysis for Descartes Systems Group

Descartes Systems Group Insider Transactions Over The Last Year

Notably, that recent sale by Eric Demirian is the biggest insider sale of Descartes Systems Group shares that we've seen in the last year. That means that even when the share price was slightly below the current price of CA$129, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 90% of Eric Demirian's holding.

Descartes Systems Group insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Descartes Systems Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Descartes Systems Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Descartes Systems Group insiders own 0.4% of the company, worth about CA$43m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Descartes Systems Group Insider Transactions Indicate?

An insider hasn't bought Descartes Systems Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Descartes Systems Group makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Descartes Systems Group. Every company has risks, and we've spotted 1 warning sign for Descartes Systems Group you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com