James Kamsickas is the chairman of Dana Incorporated (NYSE:DAN) and they just sold 53% of their stock

Some Dana Incorporated (NYSE:DAN) Shareholders might be a little concerned that Chairman James Kamsickas recently sold $7.1 million worth of stock at $17.78 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 53% of their entire stake.

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The last 12 months of insider trading at Dana

In fact, the recent sale by James Kamsickas was the largest sale of Dana stock by an insider in the past twelve months, according to our records. This means that even when the stock price was below the current price of US$18.24, an insider wanted to cash out some shares. We generally consider it negative if insiders sold, especially if they did below the current price, as this implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it means insiders believe the stock is fully priced, so it’s only a weak sign. Note that this sale involved 53% of James Kamsickas’ stake.

You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!

NYSE:DAN Insider Trading Volume November 21, 2022

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Does Dana boast of being a high initiate level owner?

Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. We generally like to see fairly high levels of insider ownership. It appears that Dana insiders own 0.9% of the company, worth around $22 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.

So what do Dana insider trades indicate?

An insider hasn’t bought Dana stock in the past three months, but there have been some sales. Zooming out, the longer term image doesn’t give us much comfort. Insiders hold shares, but we remain quite cautious, given the history of sales. We are in no rush to buy! While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making an investment decision. Know that Dana shows 3 warning signs in our investment analysisand 2 of them are significant…

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For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

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Find out if Dana is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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