Possible Signal As Australian Vintage Insiders Sell AU$776k In Stock

Australian Vintage Ltd's (ASX:AVG) stock rose 10% last week, but insiders who sold AU$776k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of AU$0.38, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Australian Vintage

The Last 12 Months Of Insider Transactions At Australian Vintage

In the last twelve months, the biggest single sale by an insider was when the insider, Jiang Yuan, sold AU$776k worth of shares at a price of AU$0.39 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$0.16). So it is hard to draw any strong conclusion from it. Jiang Yuan was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 362.21k shares worth AU$72k. On the other hand they divested 2.03m shares, for AU$776k. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At Australian Vintage Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Australian Vintage. Insiders bought AU$72k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Australian Vintage Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that Australian Vintage insiders own about AU$6.2m worth of shares (which is 12% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Australian Vintage Insiders?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for Australian Vintage that deserve your attention before buying any shares.

But note: Australian Vintage 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.

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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.