Have Insiders Sold Ventia Services Group Shares Recently?

Some Ventia Services Group Limited (ASX:VNT) shareholders may be a little concerned to see that the MD, Group CEO & Executive Director, Dean Banks, recently sold a substantial AU$8.2m worth of stock at a price of AU$5.45 per share. That sale reduced their total holding by 19% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Ventia Services Group

In fact, the recent sale by Dean Banks was the biggest sale of Ventia Services Group shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of AU$5.44. 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.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 Ventia Services Group

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Does Ventia Services Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Ventia Services Group insiders own 2.5% of the company, worth about AU$113m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Ventia Services Group Insiders?

An insider hasn't bought Ventia Services Group stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Ventia Services Group 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Ventia Services Group has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.