Trade Alert: Executive VP Of Driven Brands Holdings Scott O’Melia Has Sold Stock

Some Driven Brands Holdings Inc. (NASDAQ:DRVN) shareholders may be a little concerned to see that the Executive VP, Scott O’Melia, recently sold a substantial US$750k worth of stock at a price of US$16.00 per share. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Driven Brands Holdings

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Chair, Jonathan Fitzpatrick, sold US$3.4m worth of shares at a price of US$18.27 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$16.19). So it may not tell us anything about how insiders feel about the current share price.

In the last year Driven Brands Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Driven Brands Holdings

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Insider Ownership Of Driven Brands Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Driven Brands Holdings insiders own about US$54m worth of shares. That equates to 2.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Driven Brands Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of 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 1 warning sign that you should run your eye over to get a better picture of Driven Brands Holdings.

But note: Driven Brands Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

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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.