This Insider Has Just Sold Shares In Dynatrace

Some Dynatrace, Inc. (NYSE:DT) shareholders may be a little concerned to see that the Executive VP, James Benson, recently sold a substantial US$2.1m worth of stock at a price of US$61.05 per share. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.

See our latest analysis for Dynatrace

The Last 12 Months Of Insider Transactions At Dynatrace

In fact, the recent sale by James Benson was the biggest sale of Dynatrace shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$61.30, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 24% of James Benson's stake.

Insiders in Dynatrace didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Dynatrace

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. It appears that Dynatrace insiders own 0.5% of the company, worth about US$94m. 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 Dynatrace Insiders?

Insiders sold Dynatrace shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Dynatrace makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. When we did our research, we found 2 warning signs for Dynatrace (1 is a bit concerning!) that we believe deserve your full attention.

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.