This Insider Has Just Sold Shares In Rent.com.au Limited (ASX:RNT)

Some Rent.com.au Limited (ASX:RNT) shareholders may be a little concerned to see that insider Jason Carroll recently sold a substantial AU$3.2m worth of stock at a price of AU$0.21 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 55% of their entire holding.

See our latest analysis for Rent.com.au

Rent.com.au Insider Transactions Over The Last Year

Notably, that recent sale by Jason Carroll is the biggest insider sale of Rent.com.au shares that we've seen in the last year. That means that an insider was selling shares at around the current price of AU$0.20. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 12.30m shares worth AU$523k. But insiders sold 15.60m shares worth AU$3.2m. Jason Carroll divested 15.60m shares over the last 12 months at an average price of AU$0.20. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Rent.com.au

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Rent.com.au insiders own about AU$27m worth of shares (which is 42% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Rent.com.au Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Rent.com.au stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 5 warning signs for Rent.com.au and we suggest you have a look.

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, but not derivative transactions.

If you’re looking to trade Rent.com.au, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.