Independent Non-Executive Director Of GR Engineering Services Sold 38% Of Their Shares

Some GR Engineering Services Limited (ASX:GNG) shareholders may be a little concerned to see that the Independent Non-Executive Director, Giuseppe Totaro, recently sold a substantial AU$12m worth of stock at a price of AU$4.10 per share. That sale reduced their total holding by 38% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At GR Engineering Services

Notably, that recent sale by Giuseppe Totaro is the biggest insider sale of GR Engineering Services shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of AU$3.94. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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.

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!

Check out our latest analysis for GR Engineering Services

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Does GR Engineering Services Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. GR Engineering Services insiders own 34% of the company, currently worth about AU$225m 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 GR Engineering Services Insiders?

An insider hasn't bought GR Engineering Services stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since GR Engineering Services is profitable and growing, we're not too worried by this. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GR Engineering Services. At Simply Wall St, we've found that GR Engineering Services has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

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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.