Selling AU$1.5m Of Stock Was Lucrative Decision For Acusensus Insiders

While it’s been a great week for Acusensus Limited (ASX:ACE) shareholders after stock gained 13%, they should consider it with a grain of salt. Even though stock prices were relatively low, insiders elected to sell AU$1.5m worth of stock in the last year, which could indicate some expected downturn.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

We've discovered 2 warning signs about Acusensus. View them for free.

The Last 12 Months Of Insider Transactions At Acusensus

The Co-Founder, Alexander Jannink, made the biggest insider sale in the last 12 months. That single transaction was for AU$1.5m worth of shares at a price of AU$0.90 each. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$1.15. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. This single sale was just 9.9% of Alexander Jannink's stake. The only individual insider seller over the last year was Alexander Jannink.

In the last twelve months insiders purchased 170.00k shares for AU$102k. But they sold 1.67m shares for AU$1.5m. 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!

Check out our latest analysis for Acusensus

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Acusensus Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Acusensus insiders own 15% of the company, worth about AU$25m. 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 Acusensus Insiders?

It doesn't really mean much that no insider has traded Acusensus shares in the last quarter. Our analysis of Acusensus insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for Acusensus (1 is a bit concerning!) and we strongly recommend you look at these before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.