DT Midstream Executive VP Wendy Ellis Sells 75% Of Holding

We wouldn't blame DT Midstream, Inc. (NYSE:DTM) shareholders if they were a little worried about the fact that Wendy Ellis, the Executive VP recently netted about US$1.8m selling shares at an average price of US$93.02. Probably the most concerning element of the whole transaction is that the disposal amounted to 75% of their entire holding.

View our latest analysis for DT Midstream

DT Midstream Insider Transactions Over The Last Year

In fact, the recent sale by Wendy Ellis was the biggest sale of DT Midstream shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$89.65. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid US$98k for 1.46k shares. But they sold 18.85k shares for US$1.8m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like DT Midstream 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.

Does DT Midstream Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. DT Midstream insiders own about US$34m worth of shares. That equates to 0.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About DT Midstream Insiders?

The insider sales have outweighed the insider buying, at DT Midstream, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DT Midstream. For example - DT Midstream has 2 warning signs we think you should be aware of.

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 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.