Don't Ignore The Insider Selling In PEXA Group

We wouldn't blame PEXA Group Limited (ASX:PXA) shareholders if they were a little worried about the fact that Glenn King, the Group MD recently netted about AU$1.8m selling shares at an average price of AU$13.53. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

View our latest analysis for PEXA Group

PEXA Group Insider Transactions Over The Last Year

In fact, the recent sale by Glenn King was the biggest sale of PEXA Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (AU$14.09). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 11% of Glenn King's holding.

Over the last year, we can see that insiders have bought 26.42k shares worth AU$300k. On the other hand they divested 130.00k shares, for AU$1.8m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does PEXA Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. PEXA Group insiders own about AU$26m worth of shares. That equates to 1.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About PEXA Group Insiders?

An insider hasn't bought PEXA Group stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - PEXA Group has 1 warning sign we think you should be aware of.

Of course PEXA Group 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 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.