Don't Ignore The Insider Selling In DHT Holdings
DHT Holdings, Inc. DHT | 0.00 |
We wouldn't blame DHT Holdings, Inc. (NYSE:DHT) shareholders if they were a little worried about the fact that Laila Halvorsen, the Chief Financial Officer recently netted about US$1.0m selling shares at an average price of US$20.00. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At DHT Holdings
Notably, that recent sale by Laila Halvorsen is the biggest insider sale of DHT Holdings shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$19.82. 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.
In the last year DHT Holdings insiders didn't buy any company stock. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. DHT Holdings insiders own about US$59m worth of shares. That equates to 1.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At DHT Holdings Tell Us?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since DHT Holdings is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. For example, DHT Holdings has 4 warning signs (and 2 which shouldn't be ignored) we think you should know about.
But note: DHT 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.
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.
