Even though The Duckhorn Portfolio, Inc. (NYSE:NAPA) has fallen by 13% over the past week , insiders who sold US$2.7m worth of stock over the past year have had less luck. The average selling price of US$15.51 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
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 Duckhorn Portfolio
The Last 12 Months Of Insider Transactions At Duckhorn Portfolio
In the last twelve months, the biggest single sale by an insider was when the Executive VP and Chief Strategy & Legal Officer, Sean Sullivan, sold US$775k worth of shares at a price of US$15.56 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$8.98. So it is hard to draw any strong conclusion from it.
All up, insiders sold more shares in Duckhorn Portfolio than they bought, 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 Duckhorn Portfolio better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Duckhorn Portfolio Insiders Bought Stock Recently
We saw some Duckhorn Portfolio insider buying shares in the last three months. Interim President Deirdre Mahlan bought US$50k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Duckhorn Portfolio insiders own 3.2% of the company, worth about US$37m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Duckhorn Portfolio Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. Our analysis of Duckhorn Portfolio insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in Duckhorn Portfolio, you should check out this free report on analyst forecasts for the company.
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 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.