Possible Bearish Signals With Grid Dynamics Holdings Insiders Disposing Stock

Many Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Grid Dynamics Holdings

Grid Dynamics Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Chairman, Lloyd Carney, for US$2.1m worth of shares, at about US$12.55 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$12.87. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 14% of Lloyd Carney's stake.

Grid Dynamics Holdings 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Grid Dynamics Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Grid Dynamics Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Grid Dynamics Holdings insiders own about US$62m worth of shares. That equates to 6.4% 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 Grid Dynamics Holdings Insiders?

It doesn't really mean much that no insider has traded Grid Dynamics Holdings shares in the last quarter. Our analysis of Grid Dynamics Holdings insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Grid Dynamics Holdings. In terms of investment risks, we've identified 1 warning sign with Grid Dynamics Holdings and understanding it should be part of your investment process.

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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.