Campbell McComb Is The Interim Chairman of Auctus Investment Group Limited (ASX:AVC) And They Just Sold 78% Of Their Shares

We'd be surprised if Auctus Investment Group Limited (ASX:AVC) shareholders haven't noticed that the Interim Chairman, Campbell McComb, recently sold AU$294k worth of stock at AU$0.23 per share. In particular, we note that the sale equated to a 78% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for Auctus Investment Group

The Last 12 Months Of Insider Transactions At Auctus Investment Group

In fact, the recent sale by Campbell McComb was the biggest sale of Auctus Investment Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (AU$0.60). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 78% of Campbell McComb's stake.

Insiders in Auctus Investment Group didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Auctus Investment Group

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. Auctus Investment Group insiders own about AU$5.7m worth of shares. That equates to 16% of the company. 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 Does This Data Suggest About Auctus Investment Group Insiders?

Insiders sold Auctus Investment Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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 instance, we've identified 5 warning signs for Auctus Investment Group (1 can't be ignored) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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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