Have Synertec Corporation Limited (ASX:SOP) Insiders Been Selling Their Stock?

We'd be surprised if Synertec Corporation Limited (ASX:SOP) shareholders haven't noticed that an insider, Kerry Abdallah, recently sold AU$506k worth of stock at AU$0.072 per share. The eyebrow raising move amounted to a reduction of 16% in their holding.

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Synertec Insider Transactions Over The Last Year

In fact, the recent sale by Kerry Abdallah was the biggest sale of Synertec 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$0.073. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

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 winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Synertec insiders own 29% of the company, worth about AU$5.9m. 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 Synertec Insiders?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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, Synertec has 5 warning signs (and 1 which is a bit concerning) we think you should know about.

Of course Synertec 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, but not derivative transactions.

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