How Much Are DXC Technology Company (NYSE:DXC) Insiders Taking Off The Table?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell DXC Technology Company (NYSE:DXC), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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DXC Technology Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Michael Nefkens sold US$4.0m worth of shares at a price of US$102 per share. That is hardly a positive sign, even though it took place above the latest price (US$60.22). So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders netted US$5.2m for 51.17k shares sold. All up, insiders sold more shares in DXC Technology than they bought, over the last year. They sold for an average price of about US$101. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$60.22). You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like DXC Technology 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 DXC Technology Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that DXC Technology insiders own 0.4% of the company, worth about US$60m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The DXC Technology Insider Transactions Indicate?
The fact that there have been no DXC Technology insider transactions recently certainly doesn’t bother us. Still, the insider transactions at DXC Technology in the last 12 months are not very heartening. 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 DXC Technology, you should check out this free report on analyst forecasts for the company.
But note: DXC Technology 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
