Yahoo Finance Are Insiders Selling Dana Incorporated (NYSE:DAN) Stock?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Dana Incorporated (NYSE:DAN).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
View our latest analysis for Dana
Dana Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Executive VP & Member of Strategy Board Mark Wallace for US$1.3m worth of shares, at about US$33.54 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$13.70. So it may not tell us anything about how insiders feel about the current share price.
We note that in the last year insiders divested 88.61k shares for a total of US$2.6m. In total, Dana insiders sold more than they bought over the last year. The sellers received a price of around US$29.21, on average. It is certainly not great to see that insiders have sold shares in the company. But the selling was at much higher prices than the current share price (US$13.70), so it probably doesn’t tell us a lot about the value on offer today. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Dana 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 Dana
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. Dana insiders own about US$8.4m worth of shares (which is 0.4% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Dana Insider Transactions Indicate?
The fact that there have been no Dana insider transactions recently certainly doesn’t bother us. We don’t take much encouragement from the transactions by Dana insiders. And usually insiders own more stock in the company, according to our data. Of course, the future is what matters most. So if you are interested in Dana, you should check out this free report on analyst forecasts for the company.
Of course Dana may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
