Don't Ignore The Insider Selling In Oliver's Real Food

Investors may wish to note that an insider of Oliver's Real Food Limited, Jason Gunn, recently netted AU$126k from selling stock, receiving an average price of AU$0.017. It wasn't a huge sale, but it did reduce their holding by 24%. This does not instill confidence.

Check out our latest analysis for Oliver's Real Food

The Last 12 Months Of Insider Transactions At Oliver's Real Food

Notably, that recent sale by Jason Gunn is the biggest insider sale of Oliver's Real Food shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$0.013. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid AU$92k for 5.10m shares. On the other hand they divested 8.01m shares, for AU$132k. Jason Gunn ditched 8.01m shares over the year. The average price per share was AU$0.016. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 Oliver's Real Food

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Oliver's Real Food insiders own 38% of the company, worth about AU$2.2m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Oliver's Real Food Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Oliver's Real Food stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oliver's Real Food. At Simply Wall St, we've found that Oliver's Real Food has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

Of course Oliver's Real Food 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com