The Non-Executive Director of Easton Investments Limited (ASX:EAS), John Hayes, Just Sold 33% Of Their Holding

Some Easton Investments Limited (ASX:EAS) shareholders may be a little concerned to see that the Non-Executive Director, John Hayes, recently sold a substantial AU$3.0m worth of stock at a price of AU$1.52 per share. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Easton Investments

The Last 12 Months Of Insider Transactions At Easton Investments

In fact, the recent sale by John Hayes was the biggest sale of Easton Investments shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of AU$1.30. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid AU$101k for 90.00k shares. On the other hand they divested 3.42m shares, for AU$5.2m. Over the last year we saw more insider selling of Easton Investments shares, than buying. 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

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Easton Investments insiders own about AU$20m worth of shares (which is 41% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Easton Investments Tell Us?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for Easton Investments 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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