We'd be surprised if Data#3 Limited (ASX:DTL) shareholders haven't noticed that the Independent Non-Executive Director, Susan Forrester, recently sold AU$168k worth of stock at AU$7.49 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

Data#3 Insider Transactions Over The Last Year

In fact, the recent sale by Susan Forrester was the biggest sale of Data#3 shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of AU$7.17. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last twelve months insiders purchased 9.83k shares for AU$79k. On the other hand they divested 29.19k shares, for AU$218k. Susan Forrester sold a total of 29.19k shares over the year at an average price of AU$7.48. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Data#3

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Data#3 insiders own 3.4% of the company, worth about AU$38m. 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 Do The Data#3 Insider Transactions Indicate?

An insider hasn't bought Data#3 stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Data#3 is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Data#3. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Data#3.

Of course Data#3 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.