Have Dover Insiders Been Selling Stock?

We wouldn't blame Dover Corporation (NYSE:DOV) shareholders if they were a little worried about the fact that Richard Tobin, the President recently netted about US$4.5m selling shares at an average price of US$182. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.7%.

See our latest analysis for Dover

Dover Insider Transactions Over The Last Year

Notably, that recent sale by Richard Tobin is the biggest insider sale of Dover shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$185). 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. 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. This single sale was just 9.7% of Richard Tobin's stake.

Dover insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Dover better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Dover insiders own 0.4% of the company, worth about US$105m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Dover Tell Us?

Insiders haven't bought Dover stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Dover makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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 that end, you should learn about the 3 warning signs we've spotted with Dover (including 1 which doesn't sit too well with us).

Of course Dover 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.