Have Insiders Sold SHAPE Australia Shares Recently?

Some SHAPE Australia Corporation Limited (ASX:SHA) shareholders may be a little concerned to see that the CEO, MD & Executive Director, Peter Marix-Evans, recently sold a substantial AU$1.1m worth of stock at a price of AU$4.95 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

The Last 12 Months Of Insider Transactions At SHAPE Australia

In the last twelve months, the biggest single sale by an insider was when the insider, John Drayton, sold AU$2.3m worth of shares at a price of AU$2.27 per share. That means that an insider was selling shares at slightly below the current price (AU$4.92). 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. We note that the biggest single sale was only 9.9% of John Drayton's holding.

In the last twelve months insiders purchased 81.30k shares for AU$241k. But they sold 1.23m shares for AU$3.4m. In total, SHAPE Australia insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for SHAPE Australia

I will like SHAPE Australia better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. SHAPE Australia insiders own about AU$205m worth of shares (which is 51% of the company). 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 SHAPE Australia Tell Us?

Unfortunately, there has been more insider selling of SHAPE Australia stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since SHAPE Australia is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SHAPE Australia. While conducting our analysis, we found that SHAPE Australia has 2 warning signs and it would be unwise to ignore them.

Of course SHAPE Australia 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.

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.