We wouldn't blame Dana Incorporated (NYSE:DAN) shareholders if they were a little worried about the fact that Dwayne Matthews, a company insider, recently netted about US$620k selling shares at an average price of US$17.70. That's a big dump, and it decreased their holding size by 33%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Dana
Over the last year, we can see that the biggest insider sale was by the Executive VP and President of Dana Commercial Vehicle Driveline Tech., Mark Wallace, for US$766k worth of shares, at about US$13.56 per share. That means that even when the share price was below the current price of US$17.32, 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. We note that the biggest single sale was only 36% of Mark Wallace's holding.
In total, Dana insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does Dana Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Dana insiders own 0.7% of the company, worth about US$18m. 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 Dana Insiders?
Insiders sold Dana shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Dana is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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.
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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, but not derivative transactions.
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