Trade Alert: CEO, MD & Executive Director Of Solvar Scott Baldwin Has Sold Stock

We'd be surprised if Solvar Limited (ASX:SVR) shareholders haven't noticed that the CEO, MD & Executive Director, Scott Baldwin, recently sold AU$215k worth of stock at AU$1.05 per share. The eyebrow raising move amounted to a reduction of 30% in their holding.

View our latest analysis for Solvar

Solvar Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Alexander Waislitz for AU$679k worth of shares, at about AU$1.79 per share. That means that an insider was happy to buy shares at above the current price of AU$1.07. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 649.95k shares for AU$988k. But they sold 205.09k shares for AU$215k. In total, Solvar insiders bought more than they sold over the last year. They paid about AU$1.52 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Solvar Boast High Insider Ownership?

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. Solvar insiders own about AU$20m worth of shares. That equates to 8.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Solvar Insiders?

The stark truth for Solvar is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Solvar. To that end, you should learn about the 3 warning signs we've spotted with Solvar (including 1 which is a bit concerning).

Of course Solvar 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.

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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.