Have Insiders Sold Dis-Chem Pharmacies Shares Recently?

We wouldn't blame Dis-Chem Pharmacies Limited (JSE:DCP) shareholders if they were a little worried about the fact that Saul Saltzman, the Executive Director recently netted about R20m selling shares at an average price of R37.20. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.0%.

View our latest analysis for Dis-Chem Pharmacies

Dis-Chem Pharmacies Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Director, Stanley Richard Goetsch, sold R162m worth of shares at a price of R34.54 per share. That means that even when the share price was below the current price of R37.64, 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. 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. It is worth noting that this sale was only 13% of Stanley Richard Goetsch's holding.

In the last year Dis-Chem Pharmacies insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Dis-Chem Pharmacies Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Dis-Chem Pharmacies insiders own 8.8% of the company, currently worth about R2.8b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Dis-Chem Pharmacies Tell Us?

An insider hasn't bought Dis-Chem Pharmacies 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. But since Dis-Chem Pharmacies is profitable and growing, we're not too worried by this. 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. 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 1 warning sign for Dis-Chem Pharmacies you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.