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This Insider Has Just Sold Shares In Dover Corporation (NYSE:DOV)

Simply Wall St

We'd be surprised if Dover Corporation (NYSE:DOV) shareholders haven't noticed that the Independent Director, Kristiane Graham, recently sold US$110k worth of stock at US$110 per share. On the bright side, that sale was only 0.2% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Dover

The Last 12 Months Of Insider Transactions At Dover

Over the last year, we can see that the biggest insider sale was by the CEO & President of Dover Fluids, William Spurgeon, for US$2.0m worth of shares, at about US$98.42 per share. That means that an insider was selling shares at slightly below the current price (US$109). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was 68% of William Spurgeon's holding.

We note that in the last year insiders divested 82481 shares for a total of US$7.7m. Insiders in Dover didn't buy any shares in the last year. The chart below shows insider transactions (by 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!

NYSE:DOV Recent Insider Trading, November 8th 2019

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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. Dover insiders own about US$219m worth of shares (which is 1.4% 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.

What Might The Insider Transactions At Dover Tell Us?

An insider sold Dover shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.