Non Executive Director Of Australian Agricultural Projects Sold 78% Of Their Shares

Some Australian Agricultural Projects Ltd (ASX:AAP) shareholders may be a little concerned to see that the Non Executive Director, Daniel Stefanetti, recently sold a substantial AU$2.0m worth of stock at a price of AU$0.042 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 78% of their entire holding.

View our latest analysis for Australian Agricultural Projects

Australian Agricultural Projects Insider Transactions Over The Last Year

In fact, the recent sale by Daniel Stefanetti was the biggest sale of Australian Agricultural Projects shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of AU$0.048, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 78% of Daniel Stefanetti's holding.

In the last twelve months insiders purchased 4.07m shares for AU$66k. On the other hand they divested 46.87m shares, for AU$2.0m. 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!

I will like Australian Agricultural Projects better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Australian Agricultural Projects

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. Australian Agricultural Projects insiders own 53% of the company, currently worth about AU$9.4m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Australian Agricultural Projects Insiders?

An insider hasn't bought Australian Agricultural Projects stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Australian Agricultural Projects is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 6 warning signs for Australian Agricultural Projects (of which 1 is a bit concerning!) you should know about.

But note: Australian Agricultural Projects may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.