Have Insiders Sold Diaceutics PLC (LON:DXRX) Shares Recently?

We'd be surprised if Diaceutics PLC (LON:DXRX) shareholders haven't noticed that the Executive Officer, Philip White, recently sold UK£198k worth of stock at UK£0.99 per share. The eyebrow raising move amounted to a reduction of 12% in their holding.

Check out our latest analysis for Diaceutics

The Last 12 Months Of Insider Transactions At Diaceutics

In fact, the recent sale by Executive Officer Philip White was not their only sale of Diaceutics shares this year. Earlier in the year, they fetched UK£1.23 per share in a -UK£246k sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (UK£1.02). So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid UK£109k for 103.98k shares. But they sold 450.00k shares for UK£506k. Over the last year we saw more insider selling of Diaceutics shares, than buying. 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!

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 Diaceutics

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Diaceutics insiders own about UK£29m worth of shares. That equates to 33% of the company. 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 Does This Data Suggest About Diaceutics Insiders?

Unfortunately, there has been more insider selling of Diaceutics stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Diaceutics is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. Our analysis shows 2 warning signs for Diaceutics (1 is significant!) and we strongly recommend you look at them before investing.

But note: Diaceutics 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, but not derivative transactions.

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

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.