We'd be surprised if Acumentis Group Limited (ASX:ACU) shareholders haven't noticed that an insider, Glen White, recently sold AU$200k worth of stock at AU$0.13 per share. That sale was 18% of their holding, so it does make us raise an eyebrow.
View our latest analysis for Acumentis Group
Acumentis Group Insider Transactions Over The Last Year
Notably, that recent sale by Glen White is the biggest insider sale of Acumentis Group 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$0.13. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Glen White sold a total of 2.65m shares over the year at an average price of AU$0.13. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Acumentis Group insiders own about AU$4.3m worth of shares. That equates to 22% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Acumentis Group Insider Transactions Indicate?
An insider sold Acumentis Group shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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, Acumentis Group has 5 warning signs (and 2 which are concerning) we think you should know about.
But note: Acumentis Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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.
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About ASX:ACU
Acumentis Group
Provides valuation, research, and advisory services in relation to property and businesses in Australia.
Flawless balance sheet and good value.
