Have Insiders Sold Astron Shares Recently?

We wouldn't blame Astron Corporation Limited (ASX:ATR) shareholders if they were a little worried about the fact that Tiger Brown, the MD, CEO & Executive Director recently netted about AU$4.3m selling shares at an average price of AU$0.66. However, that sale only accounted for 6.2% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Astron

Astron Insider Transactions Over The Last Year

Notably, that recent sale by Tiger Brown is the biggest insider sale of Astron 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$0.62. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Astron insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Astron

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Astron insiders own 79% of the company, worth about AU$92m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Astron Tell Us?

Insiders sold Astron shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Astron (of which 1 is significant!) you should know about.

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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.