dorsaVi Insiders Added AU$804.1k Of Stock To Their Holdings

Simply Wall St · 10/16 02:37

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of dorsaVi Ltd (ASX:DVL), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for dorsaVi

The Last 12 Months Of Insider Transactions At dorsaVi

In the last twelve months, the biggest single sale by an insider was when the insider, Sufian Ahmad, sold AU$700k worth of shares at a price of AU$0.013 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$0.011). So it may not tell us anything about how insiders feel about the current share price. Sufian Ahmad was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 71.20m shares worth AU$804k. But insiders sold 60.03m shares worth AU$700k. In total, dorsaVi insiders bought more than they sold over the last year. They paid about AU$0.011 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
ASX:DVL Insider Trading Volume October 16th 2024

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At dorsaVi Have Sold Stock Recently

There was substantially more insider selling, than buying, of dorsaVi shares over the last three months. In that time, insider Sufian Ahmad dumped AU$700k worth of shares. On the other hand we note insider Ifrah Nishat bought AU$403k worth of shares. We don't view these transactions as a positive sign.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. dorsaVi insiders own about AU$2.7m worth of shares (which is 40% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At dorsaVi Tell Us?

The insider sales have outweighed the insider buying, at dorsaVi, in the last three months. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. 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. For instance, we've identified 4 warning signs for dorsaVi (2 are a bit unpleasant) you should be aware of.

Of course dorsaVi 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.