Have Insiders Sold SKS Technologies Group Shares Recently?

We wouldn't blame SKS Technologies Group Limited (ASX:SKS) shareholders if they were a little worried about the fact that Gregory Jinks, the Executive Director recently netted about AU$5.4m selling shares at an average price of AU$1.80. That sale reduced their total holding by 22% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for SKS Technologies Group

SKS Technologies Group Insider Transactions Over The Last Year

Notably, that recent sale by Gregory Jinks is the biggest insider sale of SKS Technologies Group shares that we've seen in the last year. That means that even when the share price was below the current price of AU$1.99, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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 22% of Gregory Jinks's holding.

Over the last year, we can see that insiders have bought 211.67k shares worth AU$101k. But they sold 6.00m shares for AU$11m. In total, SKS Technologies Group insiders sold more than they bought over the last year. The sellers received a price of around AU$1.80, on average. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of SKS Technologies Group

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 32% of SKS Technologies Group shares, worth about AU$72m. 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 SKS Technologies Group Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at SKS Technologies Group, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since SKS Technologies Group is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for SKS Technologies Group and we suggest you have a look.

But note: SKS Technologies Group 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.