Desktop Metal, Inc. (NYSE:DM) insiders need another US$292k to breakeven on a US$653k stock purchase even after recent gains

Insiders who bought US$653k worth of Desktop Metal, Inc. (NYSE:DM) stock in the last year recovered part of their losses as the stock rose by 22% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$292k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Desktop Metal

Desktop Metal Insider Transactions Over The Last Year

The Co-Founder & CEO Ric Fulop made the biggest insider purchase in the last 12 months. That single transaction was for US$525k worth of shares at a price of US$4.08 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.13). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Ric Fulop was the only individual insider to buy shares in the last twelve months.

Ric Fulop bought a total of 169.85k shares over the year at an average price of US$3.85. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Desktop Metal 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.

Insider Ownership Of Desktop Metal

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Desktop Metal insiders own about US$76m worth of shares. That equates to 11% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Desktop Metal Insiders?

It doesn't really mean much that no insider has traded Desktop Metal shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Desktop Metal and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Desktop Metal.

Of course Desktop Metal 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, 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.

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