Some Dorman Products, Inc. (NASDAQ:DORM) shareholders may be a little concerned to see that the Founder & Non-Executive Chairman, Steven Berman, recently sold a substantial US$7.1m worth of stock at a price of US$92.10 per share. However, that sale only accounted for 2.9% of their holding, so arguably it doesn't say much about their conviction.

Dorman Products Insider Transactions Over The Last Year

Notably, that recent sale by Steven Berman is the biggest insider sale of Dorman Products 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$92.24. 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.

All up, insiders sold more shares in Dorman Products than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Dorman Products 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 Of Dorman Products

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Dorman Products insiders own 11% of the company, currently worth about US$316m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Dorman Products Insider Transactions Indicate?

Insiders sold Dorman Products shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Dorman Products makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Dorman Products and we suggest you have a look.

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.

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