Have Insiders Sold Diaceutics Shares Recently?

Some Diaceutics PLC (LON:DXRX) shareholders may be a little concerned to see that the Founder & Executive Chairman, Peter Keeling, recently sold a substantial UK£630k worth of stock at a price of UK£1.26 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.2%.

We've discovered 1 warning sign about Diaceutics. View them for free.

Diaceutics Insider Transactions Over The Last Year

In fact, the recent sale by Peter Keeling was the biggest sale of Diaceutics shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of UK£1.28, 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 only 3.2% of Peter Keeling's holding.

Over the last year, we can see that insiders have bought 53.58k shares worth UK£70k. But they sold 500.00k shares for UK£630k. 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!

View our latest analysis for Diaceutics

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).

Does Diaceutics Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Diaceutics insiders own 24% of the company, worth about UK£26m. 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 Diaceutics Insider Transactions Indicate?

The stark truth for Diaceutics is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Diaceutics you should be aware of.

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.