Duos Technologies Group, Inc. (NASDAQ: DUOT) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 16%, resulting in a US $ 3.5m rise in the company’s market capitalization. As a result, their original purchase of US $ 1.2m worth of stock is now worth US $ 1.2m.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Duos Technologies Group
In the last twelve months, the biggest single purchase by an insider was when insider Sandra Pessin bought US $ 1.2m worth of shares at a price of US $ 4.00 per share. That means that an insider was happy to buy shares at around the current price of US $ 4.03. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Duos Technologies Group insiders decided to buy shares at close to current prices.
In the last twelve months Duos Technologies Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Duos Technologies Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Duos Technologies Group Have Bought Stock Recently
We saw some Duos Technologies Group insider buying shares in the last three months. CEO & Director Charles Ferry shelled out US $ 11k for shares in that time. It’s great to see that insiders are only buying, not selling. But the amount invested in the last three months is not enough for us too put much weight on it, as a single factor.
Does Duos Technologies Group 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. We usually like to see fairly high levels of insider ownership. It appears that Duos Technologies Group insiders own 21% of the company, worth about US $ 5.1m. 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 Duos Technologies Group Insiders?
We note that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Duos Technologies Group and we see no evidence to suggest they are worried about the future. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. To help with this, we’ve discovered 5 warning signs (2 are potentially serious!) That you ought to be aware of before buying any shares in Duos Technologies Group.
But note: Duos Technologies Group 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.
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, but not derivative transactions.
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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.