Anyone interested in Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) should probably be aware that the Independent Chairman, Lloyd Carney, recently divested US$214k worth of shares in the company, at an average price of US$11.61 each. On the bright side, that sale was only 1.7% of their holding, so we doubt it's very meaningful, on its own.
Check out our latest analysis for Grid Dynamics Holdings
The Last 12 Months Of Insider Transactions At Grid Dynamics Holdings
In fact, the recent sale by Independent Chairman Lloyd Carney was not their only sale of Grid Dynamics Holdings shares this year. Earlier in the year, they fetched US$12.55 per share in a -US$2.1m sale. So we know that an insider sold shares at around the present share price of US$12.20. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Grid Dynamics Holdings insiders didn't buy any shares over 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!
I will like Grid Dynamics Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Grid Dynamics Holdings
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. Insiders own 6.1% of Grid Dynamics Holdings shares, worth about US$56m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Grid Dynamics Holdings Insider Transactions Indicate?
An insider sold Grid Dynamics Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Grid Dynamics Holdings.
But note: Grid Dynamics 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.