Don't Ignore The Fact That This Insider Just Sold Some Shares In Dyadic International, Inc. (NASDAQ:DYAI)

By
Simply Wall St
Published
August 19, 2021
NasdaqCM:DYAI
Source: Shutterstock

We wouldn't blame Dyadic International, Inc. (NASDAQ:DYAI) shareholders if they were a little worried about the fact that Mark Emalfarb, the Founder recently netted about US$118b selling shares at an average price of US$675,695. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.2%.

See our latest analysis for Dyadic International

Dyadic International Insider Transactions Over The Last Year

Notably, that recent sale by Mark Emalfarb is the biggest insider sale of Dyadic International shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$4.51). So it may not shed much light on insider confidence at current levels.

Mark Emalfarb divested 507.07k shares over the last 12 months at an average price of US$233,198. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqCM:DYAI Insider Trading Volume August 19th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Dyadic International Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Dyadic International insiders own 60% of the company, currently worth about US$76m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Dyadic International Tell Us?

The stark truth for Dyadic International is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. 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. You'd be interested to know, that we found 5 warning signs for Dyadic International and we suggest you have a look.

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, but not derivative transactions.

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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.
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