A number of insiders bought Daktronics, Inc. (NASDAQ:DAKT) stock last year, which is great news for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Daktronics, Inc. (NASDAQ:DAKT), that sends out a positive message to the company's shareholders.
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.
Check out our latest analysis for Daktronics
The Last 12 Months Of Insider Transactions At Daktronics
In the last twelve months, the biggest single sale by an insider was when the Vice President of Manufacturing, Matthew Kurtenbach, sold US$70k worth of shares at a price of US$7.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$3.92). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Matthew Kurtenbach.
In the last twelve months insiders purchased 23.00k shares for US$101k. But they sold 10.00k shares for US$70k. Overall, Daktronics insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Daktronics Have Bought Stock Recently
There was some insider buying at Daktronics over the last quarter. Chairman Reece Kurtenbach purchased US$40k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Daktronics insiders own about US$20m worth of shares. That equates to 11% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Daktronics Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Daktronics and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Daktronics. Case in point: We've spotted 4 warning signs for Daktronics you should be aware of, and 1 of them can't be ignored.
Of course Daktronics 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, 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.
