Insider Sellers Might Regret Selling Dangee Dums Shares at a Lower Price Than Current Market Value

Dangee Dums Limited's (NSE:DANGEE) stock price has dropped 11% in the previous week, but insiders who sold ₹92m in stock over the past year have had less luck. The average selling price of ₹6.85 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Dangee Dums Insider Transactions Over The Last Year

The insider, Ravi Patel, made the biggest insider sale in the last 12 months. That single transaction was for ₹92m worth of shares at a price of ₹6.85 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 ₹4.12. 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 Ravi Patel.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Dangee Dums

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Dangee Dums insiders own 56% of the company, worth about ₹353m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Dangee Dums Insiders?

It doesn't really mean much that no insider has traded Dangee Dums shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Dangee Dums insiders selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Dangee Dums you should be aware of, and 1 of these is potentially serious.

Of course Dangee Dums may not be the best stock to buy. So you may wish to see this free collection of high quality 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.