Independent Director Of Digimarc Sold 25% Of Their Shares

We'd be surprised if Digimarc Corporation (NASDAQ:DMRC) shareholders haven't noticed that the Independent Director, Milena Alberti-Perez, recently sold US$151k worth of stock at US$30.84 per share. The eyebrow raising move amounted to a reduction of 25% in their holding.

See our latest analysis for Digimarc

The Last 12 Months Of Insider Transactions At Digimarc

In the last twelve months, the biggest single sale by an insider was when the insider, Andrew Walter, sold US$303k worth of shares at a price of US$30.25 per share. That means that an insider was selling shares at around the current price of US$27.60. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, Digimarc insiders sold more than they bought over the last year. 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!

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Insider Ownership Of Digimarc

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. Digimarc insiders own 30% of the company, currently worth about US$197m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Digimarc Tell Us?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Digimarc. Every company has risks, and we've spotted 3 warning signs for Digimarc you should know about.

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 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.