Some Phoslock Environmental Technologies Limited (ASX:PET) shareholders may be a little concerned to see that the MD, Company Secretary & Executive Director, Robert Schuitema, recently sold a whopping AU$4.3m worth of stock at a price of AU$1.35 per share. That’s a big dump, and it decreased their holding size by 25.2%, which is notable but not too bad.
Phoslock Environmental Technologies Insider Transactions Over The Last Year
The Non-Executive Chairman of the Board, Laurence Freedman, made the biggest insider sale in the last 12 months. That single transaction was for AU$26m worth of shares at a price of AU$1.35 each. That means that an insider was selling shares at around the current price of AU$1.26. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
In total, Phoslock Environmental Technologies insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Insider Ownership of Phoslock Environmental Technologies
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Phoslock Environmental Technologies insiders own 34% of the company, worth about AU$249m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Phoslock Environmental Technologies Tell Us?
Insiders haven’t bought Phoslock Environmental Technologies stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn’t bring confidence, either. On the plus side, Phoslock Environmental Technologies makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
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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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