Dorian LPG Ltd.'s (NYSE:LPG) stock rose 24% last week, but insiders who sold US$1.5m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$22.65, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for DorianG
The Last 12 Months Of Insider Transactions At DorianG
The Chairman of the Board John Hadjipateras made the biggest insider purchase in the last 12 months. That single transaction was for US$592k worth of shares at a price of US$19.86 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$37.72. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In total, DorianG insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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DorianG Insiders Are Selling The Stock
The last quarter saw substantial insider selling of DorianG shares. In total, insiders dumped US$423k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
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. DorianG insiders own about US$113m worth of shares (which is 7.3% 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 Does This Data Suggest About DorianG Insiders?
Insiders sold DorianG shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since DorianG is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 4 warning signs for DorianG (1 can't be ignored) you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.