By selling US$2.7m worth of Doximity, Inc. (NYSE:DOCS) stock at an average sell price of US$58.62 over the last year, insiders seemed to have made the most of their holdings. After the stock price dropped 8.0% last week, the company's market value declined by US$515m, but insiders were able to mitigate their losses.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Doximity

The Last 12 Months Of Insider Transactions At Doximity

Over the last year, we can see that the biggest insider sale was by the insider, Gilbert Kliman, for US$1.7m worth of shares, at about US$59.00 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$30.41). So it is hard to draw any strong conclusion from it. Gilbert Kliman was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 17.95k shares for US$585k. On the other hand they divested 46.89k shares, for US$2.7m. Gilbert Kliman divested 46.89k shares over the last 12 months at an average price of US$58.62. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Doximity insiders own 27% of the company, currently worth about US$1.6b 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 Doximity Insider Transactions Indicate?

The fact that there have been no Doximity insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Doximity insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Doximity is showing 2 warning signs in our investment analysis, and 1 of those is significant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.