This Insider Has Just Sold Shares In AML3D Limited (ASX:AL3)

Anyone interested in AML3D Limited (ASX:AL3) should probably be aware that the CEO, MD & Director, Andrew Michael Sales, recently divested AU$250k worth of shares in the company, at an average price of AU$0.071 each. However, the silver lining is that the sale only reduced their total holding by 8.8%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for AML3D

The Last 12 Months Of Insider Transactions At AML3D

Notably, that recent sale by Andrew Michael Sales is the biggest insider sale of AML3D shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (AU$0.08). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 8.8% of Andrew Michael Sales's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 AML3D

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 32% of AML3D shares, worth about AU$4.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The AML3D Insider Transactions Indicate?

An insider hasn't bought AML3D stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. When we did our research, we found 7 warning signs for AML3D (2 are a bit concerning!) that we believe deserve your full attention.

Of course AML3D 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.