DocGo Inc.'s (NASDAQ:DCGO) value has fallen 13% in the last week, but insiders who sold US$3.8m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$9.30 is still lower than the current share price.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
DocGo Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive Vice President of Strategy, Andre Oberholzer, for US$1.3m worth of shares, at about US$10.33 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$3.35. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 33.50k shares worth US$121k. But they sold 406.32k shares for US$3.8m. All up, insiders sold more shares in DocGo than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like DocGo better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
DocGo Insiders Bought Stock Recently
It's good to see that DocGo insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$121k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership Of DocGo
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that DocGo insiders own 13% of the company, worth about US$54m. 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 DocGo Tell Us?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. While recent transactions indicate confidence in DocGo, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that DocGo has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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.