We wouldn't blame Dream Finders Homes, Inc. (NYSE:DFH) shareholders if they were a little worried about the fact that J. Moran, a company insider, recently netted about US$3.8m selling shares at an average price of US$30.20. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Dream Finders Homes

The Last 12 Months Of Insider Transactions At Dream Finders Homes

Notably, that recent sale by J. Moran is the biggest insider sale of Dream Finders Homes shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$35.65. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 10% of J. Moran's holding.

Dream Finders Homes insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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's great to see that Dream Finders Homes insiders own 76% of the company, worth about US$2.5b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Dream Finders Homes Tell Us?

Insiders haven't bought Dream Finders Homes 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. But since Dream Finders Homes is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dream Finders Homes. For example - Dream Finders Homes has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.