Have Insiders Sold GrainCorp Shares Recently?

We wouldn't blame GrainCorp Limited (ASX:GNC) shareholders if they were a little worried about the fact that Robert Spurway, the CEO, MD & Director recently netted about AU$799k selling shares at an average price of AU$7.55. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.

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GrainCorp Insider Transactions Over The Last Year

Notably, that recent sale by Robert Spurway is the biggest insider sale of GrainCorp shares that we've seen in the last year. That means that even when the share price was slightly below the current price of AU$7.68, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 17% of Robert Spurway's stake.

In the last twelve months insiders purchased 36.09k shares for AU$268k. On the other hand they divested 181.40k shares, for AU$1.4m. Robert Spurway sold a total of 181.40k shares over the year at an average price of AU$7.58. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for GrainCorp

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Insider Ownership Of GrainCorp

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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that GrainCorp insiders own 0.9% of the company, worth about AU$16m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The GrainCorp Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at GrainCorp, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. For instance, we've identified 4 warning signs for GrainCorp (1 is a bit unpleasant) you should be aware of.

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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.