Bullish insiders bet US$1.3m on Duos Technologies Group, Inc. (NASDAQ:DUOT)

Multiple insiders secured a larger position in Duos Technologies Group, Inc. (NASDAQ:DUOT) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Duos Technologies Group

The Last 12 Months Of Insider Transactions At Duos Technologies Group

Notably, that recent purchase by Sandra Pessin is the biggest insider purchase of Duos Technologies Group shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$5.20. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Duos Technologies Group insiders were buying shares, but not selling. 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!

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

Over the last quarter, Duos Technologies Group insiders have spent a meaningful amount on shares. We can see that insider Sandra Pessin paid US$1.2m for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Does Duos Technologies Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Duos Technologies Group insiders own about US$3.0m worth of shares (which is 9.4% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Duos Technologies Group Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Duos Technologies Group insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Duos Technologies Group has 5 warning signs (and 3 which are potentially serious) we think you should know about.

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.