Have Insiders Sold Dream Finders Homes Shares Recently?

We wouldn't blame Dream Finders Homes, Inc. (NYSE:DFH) shareholders if they were a little worried about the fact that Patrick Zalupski, the Founder recently netted about US$3.1m selling shares at an average price of US$33.25. However, that sale only accounted for 8.4% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Dream Finders Homes

The Last 12 Months Of Insider Transactions At Dream Finders Homes

In fact, the recent sale by Founder Patrick Zalupski was not their only sale of Dream Finders Homes shares this year. They previously made an even bigger sale of -US$4.4m worth of shares at a price of US$40.77 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$33.45. So it may not shed much light on insider confidence at current levels.

In the last year Dream Finders Homes insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Dream Finders Homes insiders own 71% of the company, worth about US$2.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Dream Finders Homes Insider Transactions Indicate?

Insiders sold Dream Finders Homes shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Dream Finders Homes is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For example, Dream Finders Homes has 2 warning signs (and 1 which is significant) we think you should know about.

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 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.