By selling US$118b worth of Dyadic International, Inc. (NASDAQ:DYAI) stock at an average sell price of US$233,198 over the last year, insiders seemed to have made the most of their holdings. The company’s market cap plunged by US$15m after price dropped by 13% last week but insiders were able to limit their loss to an extent.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Dyadic International Insider Transactions Over The Last Year
The Founder, Mark Emalfarb, made the biggest insider sale in the last 12 months. That single transaction was for US$118b worth of shares at a price of US$770,984 each. 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$3.36). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Mark Emalfarb.
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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Dyadic International
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Dyadic International insiders own about US$31m worth of shares. That equates to 29% 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.
So What Does This Data Suggest About Dyadic International Insiders?
It doesn't really mean much that no insider has traded Dyadic International shares in the last quarter. Our analysis of Dyadic International insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of 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 4 warning signs for Dyadic International and we suggest you have a look.
But note: Dyadic International 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.
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.