Don't Ignore The Fact That This Insider Just Sold Some Shares In Dangee Dums Limited (NSE:DANGEE)

Some Dangee Dums Limited (NSE:DANGEE) shareholders may be a little concerned to see that the Non Executive Director, Foram Patel, recently sold a substantial ₹63m worth of stock at a price of ₹126 per share. However, that sale only accounted for 9.4% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Dangee Dums

Dangee Dums Insider Transactions Over The Last Year

Notably, that recent sale by Foram Patel is the biggest insider sale of Dangee Dums shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹133. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 9.4%of Foram Patel's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Dangee Dums better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Dangee Dums 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Dangee Dums insiders own about ₹1.1b worth of shares (which is 78% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Dangee Dums Insiders?

An insider hasn't bought Dangee Dums stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. To help with this, we've discovered 6 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in Dangee Dums.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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This article by Simply Wall St is general in nature. 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.
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