Some Dorian LPG Ltd. (NYSE:LPG) shareholders may be a little concerned to see that the Director & CEO of Dorian LPG (USA) LLC, John Lycouris, recently sold a substantial US$1.3m worth of stock at a price of US$13.62 per share. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At DorianG
In fact, the recent sale by John Lycouris was the biggest sale of DorianG shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$14.19. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. We note that the biggest single sale was only 18%of John Lycouris's holding.
DorianG insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of DorianG
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. DorianG insiders own about US$93m worth of shares. That equates to 16% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At DorianG Tell Us?
Insiders haven't bought DorianG 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 DorianG is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. Every company has risks, and we've spotted 4 warning signs for DorianG (of which 1 can't be ignored!) you should know about.
But note: DorianG may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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