Smart Parking Group CEO Paul Gillespie Sells 26% Of Holding

We'd be surprised if Smart Parking Limited (ASX:SPZ) shareholders haven't noticed that the Group CEO, Paul Gillespie, recently sold AU$678k worth of stock at AU$0.44 per share. That sale was 26% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Smart Parking

Smart Parking Insider Transactions Over The Last Year

Notably, that recent sale by Paul Gillespie is the biggest insider sale of Smart Parking shares that we've seen in the last year. That means that an insider was selling shares at around the current price of AU$0.42. While insider selling is a negative, to us, it is more negative if the shares are sold 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Smart Parking

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. Based on our data, Smart Parking insiders have about 4.8% of the stock, worth approximately AU$7.2m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

So What Do The Smart Parking Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Smart Parking is profitable and growing, we're not too worried by this. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Smart Parking. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Smart Parking.

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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.