Anyone interested in Airtasker Limited (ASX:ART) should probably be aware that the Independent Non-Executive Chairperson, James Spenceley, recently divested AU$239k worth of shares in the company, at an average price of AU$0.95 each. However, the silver lining is that the sale only reduced their total holding by 7.8%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Airtasker
In fact, the recent sale by James Spenceley was the biggest sale of Airtasker shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of AU$0.96, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 7.8% of James Spenceley's stake.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of Airtasker
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Airtasker insiders own 50% of the company, worth about AU$201m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Airtasker Insiders?
An insider hasn't bought Airtasker 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. 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 we like knowing 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. In terms of investment risks, we've identified 2 warning signs with Airtasker and understanding them should be part of your investment process.
Of course Airtasker may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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, but not derivative transactions.
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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.
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