Generation Development Group Independent Non-Executive Director Acquires 14% More Stock

Investors who take an interest in Generation Development Group Limited (ASX:GDG) should definitely note that the Independent Non-Executive Director, Christine Christian, recently paid AU$4.15 per share to buy AU$308k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 14%.

See our latest analysis for Generation Development Group

The Last 12 Months Of Insider Transactions At Generation Development Group

In the last twelve months, the biggest single sale by an insider was when the insider, John Wheeler, sold AU$5.0m worth of shares at a price of AU$2.41 per share. That means that even when the share price was below the current price of AU$5.00, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 23% of John Wheeler's holding. Notably John Wheeler was also the biggest buyer, having purchased AU$2.0m worth of shares.

In the last twelve months insiders purchased 957.55k shares for AU$2.0m. But insiders sold 5.78m shares worth AU$9.9m. Over the last year we saw more insider selling of Generation Development Group shares, than buying. The average sell price was around AU$1.71. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Generation Development 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.

Does Generation Development Group 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Generation Development Group insiders own 23% of the company, currently worth about AU$338m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Generation Development Group Insiders?

It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Generation Development Group. At Simply Wall St, we found 1 warning sign for Generation Development Group that deserve your attention before buying any shares.

But note: Generation Development 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.

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.