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$1.2m worth of stock at a price of US$26.00 per share. That diminished their holding by a very significant 64%, which arguably implies a strong desire to reallocate capital.
Dana Insider Transactions Over The Last Year
Notably, that recent sale by Aziz Aghili is the biggest insider sale of Dana shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$26.74). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 64% of Aziz Aghili's holding.
Insiders in Dana didn't buy any shares in the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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$32m 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?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dana. Our analysis shows 4 warning signs for Dana (1 is concerning!) and we strongly recommend you look at these before investing.
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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