Have 5G Networks Insiders Been Selling Stock?

We wouldn't blame 5G Networks Limited (ASX:5GN) shareholders if they were a little worried about the fact that Joseph Demase, the MD & Director recently netted about AU$1.4m selling shares at an average price of AU$0.14. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At 5G Networks

Notably, that recent sale by MD & Director Joseph Demase was not the only time they sold 5G Networks shares this year. Earlier in the year, they fetched AU$0.15 per share in a -AU$8.2m sale. So what is clear is that an insider saw fit to sell at around the current price of AU$0.14. 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.

Joseph Demase ditched 65.00m shares over the year. The average price per share was AU$0.15. 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!

Check out our latest analysis for 5G Networks

I will like 5G Networks better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider 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. It appears that 5G Networks insiders own 31% of the company, worth about AU$13m. 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 5G Networks Insiders?

An insider sold 5G Networks shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 5G Networks. To that end, you should learn about the 4 warning signs we've spotted with 5G Networks (including 1 which makes us a bit uncomfortable).

Of course 5G Networks 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.