Insiders In DocGo Left Out From 12% Price Rise After Disposing Stock

DocGo Inc.'s (NASDAQ:DCGO) stock rose 12% last week, but insiders who sold US$174k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$4.40, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

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 DocGo

In the last twelve months, the biggest single sale by an insider was when the General Counsel, Ely Tendler, sold US$103k worth of shares at a price of US$4.44 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.57). So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$117k for 80.00k shares. On the other hand they divested 39.59k shares, for US$174k. Over the last year we saw more insider selling of DocGo shares, than buying. 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!

View our latest analysis for DocGo

I will like DocGo 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.

Insiders At DocGo Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at DocGo. In total, insiders bought US$117k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Does DocGo Boast High Insider Ownership?

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. Insiders own 7.3% of DocGo shares, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About DocGo Insiders?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in DocGo, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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.