Don't Ignore The Insider Selling In GenusPlus Group

Anyone interested in GenusPlus Group Ltd (ASX:GNP) should probably be aware that the Founder, David Riches, recently divested AU$775k worth of shares in the company, at an average price of AU$2.58 each. On the bright side, that sale was only 0.3% of their holding, so we doubt it's very meaningful, on its own.

Our free stock report includes 1 warning sign investors should be aware of before investing in GenusPlus Group. Read for free now.

The Last 12 Months Of Insider Transactions At GenusPlus Group

Notably, that recent sale by David Riches is the biggest insider sale of GenusPlus Group shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (AU$2.70). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 0.3% of David Riches's holding.

Insiders in GenusPlus Group didn't buy any shares in the last year. The chart below shows insider transactions (by companies and 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!

Check out our latest analysis for GenusPlus Group

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Insider Ownership Of GenusPlus Group

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. GenusPlus Group insiders own about AU$296m worth of shares (which is 61% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At GenusPlus Group Tell Us?

Insiders sold GenusPlus Group shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since GenusPlus Group is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. In terms of investment risks, we've identified 1 warning sign with GenusPlus Group and understanding it should be part of your investment process.

Of course GenusPlus Group 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 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.