We wouldn't blame The Descartes Systems Group Inc. (TSE:DSG) shareholders if they were a little worried about the fact that Edward Ryan, the CEO & Director recently netted about CA$3.2m selling shares at an average price of CA$113. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
The Last 12 Months Of Insider Transactions At Descartes Systems Group
Notably, that recent sale by Edward Ryan is the biggest insider sale of Descartes Systems Group shares that we've seen in the last year. That means that an insider was selling shares at below the current price (CA$113). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 100% of Edward Ryan's holding.
In the last twelve months insiders purchased 35.09k shares for CA$1.8m. But insiders sold 78.73k shares worth CA$8.1m. Edward Ryan divested 78.73k shares over the last 12 months at an average price of US$103. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Descartes Systems Group
I will like Descartes Systems Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Descartes Systems Group insiders own 0.3% of the company, worth about CA$32m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Descartes Systems Group Tell Us?
An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Descartes Systems Group is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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 1 warning sign that you should run your eye over to get a better picture of Descartes Systems Group.
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.