This Insider Has Just Sold Shares In Australian Rural Capital Limited (ASX:ARC)

Anyone interested in Australian Rural Capital Limited (ASX:ARC) should probably be aware that the Executive Chairman & MD, James Jackson, recently divested AU$149k worth of shares in the company, at an average price of AU$0.30 each. That sale was 18% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Australian Rural Capital

The Last 12 Months Of Insider Transactions At Australian Rural Capital

In the last twelve months, the biggest single sale by an insider was when the insider, Andrew Brown, sold AU$360k worth of shares at a price of AU$0.42 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.23. So it is hard to draw any strong conclusion from it. Notably Andrew Brown was also the biggest buyer, having purchased AU$329k worth of shares.

Over the last year, we can see that insiders have bought 1.02m shares worth AU$329k. On the other hand they divested 1.36m shares, for AU$509k. Over the last year we saw more insider selling of Australian Rural Capital shares, than buying. They sold for an average price of about AU$0.37. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is AU$0.23). You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Australian Rural Capital better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Australian Rural Capital

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Australian Rural Capital insiders own 39% of the company, worth about AU$1.7m. 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 Australian Rural Capital Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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 Australian Rural Capital has 6 warning signs (4 don't sit too well with us!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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