We wouldn't blame DoorDash, Inc. (NYSE:DASH) shareholders if they were a little worried about the fact that Tia Sherringham, the General Counsel & Secretary recently netted about US$688k selling shares at an average price of US$58.36. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.9%.
See our latest analysis for DoorDash
The Last 12 Months Of Insider Transactions At DoorDash
Over the last year, we can see that the biggest insider sale was by the Chief Financial Officer, Prabir Adarkar, for US$4.1m worth of shares, at about US$69.33 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$55.09. So it is hard to draw any strong conclusion from it.
In the last year DoorDash 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like DoorDash better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does DoorDash Boast High Insider Ownership?
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. DoorDash insiders own 7.2% of the company, currently worth about US$1.5b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The DoorDash Insider Transactions Indicate?
An insider hasn't bought DoorDash stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for DoorDash and we suggest you have a look.
But note: DoorDash 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, but not derivative transactions.
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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.
