Director Daniel Crowley Sold A Bunch Of Shares In AVADA Group

We wouldn't blame AVADA Group Limited (ASX:AVD) shareholders if they were a little worried about the fact that Daniel Crowley, the Director recently netted about AU$944k selling shares at an average price of AU$0.066. That sale reduced their total holding by 46% 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.

AVADA Group Insider Transactions Over The Last Year

Notably, that recent sale by Daniel Crowley is the biggest insider sale of AVADA Group shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.14. So it is hard to draw any strong conclusion from it.

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!

View our latest analysis for AVADA Group

I will like AVADA Group 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.

Does AVADA Group Boast High 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. We usually like to see fairly high levels of insider ownership. AVADA Group insiders own 40% of the company, currently worth about AU$4.6m based on the recent share price. 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 AVADA Group Tell Us?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. At Simply Wall St, we've found that AVADA Group has 3 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.

But note: AVADA 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.

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.