Insiders might want to re-evaluate their US$509k stock purchase as DoubleVerify Holdings, Inc. (NYSE:DV) drops to US$4.1b
The recent 6.0% drop in DoubleVerify Holdings, Inc.'s (NYSE:DV) stock could come as a blow to insiders who purchased US$509k worth of stock at an average buy price of US$25.64 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$489k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for DoubleVerify Holdings
The Last 12 Months Of Insider Transactions At DoubleVerify Holdings
Over the last year, we can see that the biggest insider purchase was by CEO & Director Mark Zagorski for US$509k worth of shares, at about US$25.64 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$24.64). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Mark Zagorski.
You can see the insider transactions (by companies and 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!
DoubleVerify Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does DoubleVerify Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. DoubleVerify Holdings insiders own 11% of the company, currently worth about US$442m 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.
So What Do The DoubleVerify Holdings Insider Transactions Indicate?
It doesn't really mean much that no insider has traded DoubleVerify Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like DoubleVerify Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for DoubleVerify Holdings that deserve your attention before buying any shares.
But note: DoubleVerify Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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.
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