DT Midstream Insider Lowered Holding By 75% During Last Year

Insiders were net sellers of DT Midstream, Inc.'s (NYSE:DTM ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At DT Midstream

The Executive VP, Wendy Ellis, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$93.28 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$105. 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. 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. It is worth noting that this sale was 75% of Wendy Ellis's holding. The only individual insider seller over the last year was Wendy Ellis.

Happily, we note that in the last year insiders paid US$167k for 2.14k shares. But they sold 18.85k shares for US$1.8m. 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 DT Midstream

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Are DT Midstream Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider buying at DT Midstream. Executive VP Jeffrey Jewell shelled out US$6.5k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does DT Midstream Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that DT Midstream insiders own 0.3% of the company, worth about US$37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About DT Midstream Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. Our analysis of DT Midstream insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DT Midstream. Every company has risks, and we've spotted 1 warning sign for DT Midstream you should know about.

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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.