Have Insiders Sold Dave Shares Recently?

Some Dave Inc. (NASDAQ:DAVE) shareholders may be a little concerned to see that the Co-Founder, Jason Wilk, recently sold a substantial US$1.5m worth of stock at a price of US$204 per share. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Dave Insider Transactions Over The Last Year

In fact, the recent sale by Co-Founder Jason Wilk was not their only sale of Dave shares this year. They previously made an even bigger sale of -US$1.5m worth of shares at a price of US$205 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$207. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 14% of Jason Wilk's stake.

In the last year Dave insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Dave

I will like Dave 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 Of Dave

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Dave insiders own about US$528m worth of shares (which is 19% of the company). 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 Does This Data Suggest About Dave Insiders?

Insiders haven't bought Dave stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Dave 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. Case in point: We've spotted 1 warning sign for Dave you should be aware of.

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.

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.