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Don't Ignore The Fact That This Insider Just Sold Some Shares In Dycom Industries, Inc. (NYSE:DY)

Simply Wall St ·  Sep 4, 2022 08:40

We wouldn't blame Dycom Industries, Inc. (NYSE:DY) shareholders if they were a little worried about the fact that H. DeFerrari, the Senior VP recently netted about US$3.0m selling shares at an average price of US$112. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

View our latest analysis for Dycom Industries

Dycom Industries Insider Transactions Over The Last Year

In fact, the recent sale by H. DeFerrari was the biggest sale of Dycom Industries shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$110. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Dycom Industries insiders didn't buy any company stock. 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!

insider-trading-volumeNYSE:DY Insider Trading Volume September 4th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Dycom Industries

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Dycom Industries insiders own about US$112m worth of shares (which is 3.4% 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.

So What Does This Data Suggest About Dycom Industries Insiders?

Insiders haven't bought Dycom Industries stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Dycom Industries is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dycom Industries. While conducting our analysis, we found that Dycom Industries has 2 warning signs and it would be unwise to ignore them.

Of course Dycom Industries 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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