This Insider Has Just Sold Shares In Probiotec Limited (ASX:PBP)

Some Probiotec Limited (ASX:PBP) shareholders may be a little concerned to see that the CEO, MD & Executive Director, Wesley Stringer, recently sold a substantial AU$2.2m worth of stock at a price of AU$2.15 per share. That sale reduced their total holding by 16% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Probiotec

Probiotec Insider Transactions Over The Last Year

Notably, that recent sale by Wesley Stringer is the biggest insider sale of Probiotec 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$2.14. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insider Ownership of Probiotec

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 32% of Probiotec shares, worth about AU$56m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Probiotec Insiders?

An insider hasn't bought Probiotec stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Probiotec makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. Every company has risks, and we've spotted 2 warning signs for Probiotec you should know about.

Of course Probiotec 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.