Have Insiders Sold Dream Finders Homes Shares Recently?

Some Dream Finders Homes, Inc. (NYSE:DFH) shareholders may be a little concerned to see that the Founder, Patrick Zalupski, recently sold a substantial US$1.1m worth of stock at a price of US$26.19 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.0%.

See our latest analysis for Dream Finders Homes

Dream Finders Homes Insider Transactions Over The Last Year

Notably, that recent sale by Founder Patrick Zalupski was not the only time they sold Dream Finders Homes shares this year. Earlier in the year, they fetched US$31.77 per share in a -US$5.4m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$24.02. So it is hard to draw any strong conclusion from it.

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 Of Dream Finders Homes

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 Dream Finders Homes insiders own 70% of the company, worth about US$1.6b. 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 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 since Dream Finders Homes is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 Dream Finders Homes (including 2 which shouldn't be ignored).

Of course Dream Finders Homes 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.