Some Dana Incorporated (NYSE:DAN) shareholders may be a little concerned to see that the Executive VP and President of Off-Highway Drive & Motion Systems, Aziz Aghili, recently sold a substantial US$624k worth of stock at a price of US$23.56 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
Dana Insider Transactions Over The Last Year
Notably, that recent sale by Executive VP and President of Off-Highway Drive & Motion Systems Aziz Aghili was not the only time they sold Dana shares this year. They previously made an even bigger sale of -US$1.2m worth of shares at a price of US$26.00 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$22.53. So it may not tell us anything about how insiders feel about the current share price.
Insiders in Dana didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Dana better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Dana
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Dana insiders own about US$27m worth of shares. That equates to 0.8% 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 Do The Dana Insider Transactions Indicate?
An insider sold Dana shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Dana makes money, and is growing profits. 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. Our analysis shows 3 warning signs for Dana (1 is concerning!) and we strongly recommend you look at them before investing.
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, but not derivative transactions.
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.
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