Insiders Could Have Profited By Holding onto Ovanti Shares Despite 13% Drop

Even though Ovanti Limited (ASX:OVT) has fallen by 13% over the past week , insiders who sold AU$1.6m worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of AU$0.036 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Ovanti Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, Daler Fayziev, for AU$1.6m worth of shares, at about AU$0.036 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.007). So it is hard to draw any strong conclusion from it. Daler Fayziev was the only individual insider to sell shares in the last twelve months. Notably Daler Fayziev was also the biggest buyer, having purchased AU$950k worth of shares.

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!

View our latest analysis for Ovanti

I will like Ovanti 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 Ovanti Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Ovanti insiders own about AU$2.7m worth of shares (which is 9.2% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Ovanti Tell Us?

It doesn't really mean much that no insider has traded Ovanti shares in the last quarter. The insider transactions at Ovanti are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. 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. Our analysis shows 5 warning signs for Ovanti (3 are significant!) and we strongly recommend you look at these before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.