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Dun & Bradstreet Holdings, Inc. (NYSE:DNB) Insiders Who Sold US$5.5m Worth of Stock Earlier This Year Are Probably Glad They Did so as Market Cap Slides to US$5.7b

Simply Wall St ·  Sep 26, 2022 06:20

Insiders seem to have made the most of their holdings by selling US$5.5m worth of Dun & Bradstreet Holdings, Inc. (NYSE:DNB) stock at an average sell price of US$16.06 during the past year. The company's market valuation decreased by US$551m after the stock price dropped 8.9% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Dun & Bradstreet Holdings

Dun & Bradstreet Holdings Insider Transactions Over The Last Year

The Director, Chinh Chu, made the biggest insider sale in the last 12 months. That single transaction was for US$4.0m worth of shares at a price of US$16.61 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$13.04). So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 112.00k shares worth US$1.6m. But insiders sold 345.00k shares worth US$5.5m. In total, Dun & Bradstreet Holdings 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!

insider-trading-volumeNYSE:DNB Insider Trading Volume September 26th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Dun & Bradstreet 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Dun & Bradstreet Holdings insiders own about US$508m worth of shares (which is 9.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Dun & Bradstreet Holdings Insiders?

It doesn't really mean much that no insider has traded Dun & Bradstreet Holdings shares in the last quarter. While we feel good about high insider ownership of Dun & Bradstreet Holdings, we can't say the same about the selling of shares. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Dun & Bradstreet 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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