We'd be surprised if DXC Technology Company (NYSE:DXC) shareholders haven't noticed that an insider, Christopher Drumgoole, recently sold US$203k worth of stock at US$20.33 per share. However, the silver lining is that the sale only reduced their total holding by 6.9%, so we're hesitant to read anything much into it, on its own.
DXC Technology Insider Transactions Over The Last Year
The Executive VP & General Counsel, William Deckelman, made the biggest insider sale in the last 12 months. That single transaction was for US$1.6m worth of shares at a price of US$20.72 each. That means that an insider was selling shares at below the current price (US$20.86). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 65% of William Deckelman's stake.
In the last year DXC Technology insiders didn't buy any company stock. 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 Of DXC Technology
For a common shareholder, it is worth checking how many shares are held by company insiders. 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 0.9% of the company, worth about US$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About DXC Technology Insiders?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for DXC Technology.
Of course DXC Technology may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
