Have Daktronics Insiders Been Selling Stock?

Anyone interested in Daktronics, Inc. (NASDAQ:DAKT) should probably be aware that the Executive Vice President of Commercial, Bradley Wiemann, recently divested US$322k worth of shares in the company, at an average price of US$12.89 each. The eyebrow raising move amounted to a reduction of 23% in their holding.

See our latest analysis for Daktronics

The Last 12 Months Of Insider Transactions At Daktronics

In fact, the recent sale by Bradley Wiemann was the biggest sale of Daktronics shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$13.05). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 23% of Bradley Wiemann's stake.

Bradley Wiemann divested 48.84k shares over the last 12 months at an average price of US$13.31. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Daktronics

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 9.0% of Daktronics shares, worth about US$55m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Daktronics Insiders?

An insider hasn't bought Daktronics stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Daktronics you should be aware of.

Of course Daktronics may not be the best stock to buy. So you may wish to see this free collection of high quality 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.