Insiders Of Genetic Technologies Make A Tidy Sum Selling At AU$0.002 \

Last week, Genetic Technologies Limited's (ASX:GTG) stock jumped 20%, but insiders who sold AU$77k worth of stock in over the past year are likely to be in a better position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of AU$0.002, which is higher than the current price, may have been the best decision.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Genetic Technologies

The Last 12 Months Of Insider Transactions At Genetic Technologies

Over the last year, we can see that the biggest insider sale was by the Non-Independent Non-Executive Director, Jerzy Muchnicki, for AU$77k worth of shares, at about AU$0.002 per share. That means that an insider was selling shares at slightly below the current price (AU$0.003). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 15% of Jerzy Muchnicki's holding. Jerzy Muchnicki was the only individual insider to sell over the last year.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Genetic Technologies Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 6.3% of Genetic Technologies shares, worth about AU$2.2m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Genetic Technologies Tell Us?

It doesn't really mean much that no insider has traded Genetic Technologies shares in the last quarter. We don't take much encouragement from the transactions by Genetic Technologies insiders. And usually insiders own more stock in the company, according to our data. 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. Our analysis shows 5 warning signs for Genetic Technologies (3 are a bit concerning!) and we strongly recommend you look at these before investing.

Of course Genetic Technologies 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.