This Insider Has Just Sold Shares In Alcidion Group

Anyone interested in Alcidion Group Limited (ASX:ALC) should probably be aware that the Group MD, Kate Quirke, recently divested AU$425k worth of shares in the company, at an average price of AU$0.085 each. That sale was 10% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Alcidion Group

Alcidion Group Insider Transactions Over The Last Year

Notably, that recent sale by Kate Quirke is the biggest insider sale of Alcidion Group shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of AU$0.083. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 1.25m shares worth AU$60k. But they sold 5.00m shares for AU$425k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Alcidion Group 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 Alcidion Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Alcidion Group insiders own about AU$24m worth of shares. That equates to 21% 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 Do The Alcidion Group Insider Transactions Indicate?

An insider sold Alcidion Group shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alcidion Group. While conducting our analysis, we found that Alcidion Group has 3 warning signs and it would be unwise to ignore them.

But note: Alcidion Group 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.