Excite Technology Services Decline Means Insider Profits Down To AU$76k

Insiders who purchased Excite Technology Services Limited (ASX:EXT) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. After accounting for the recent loss, the AU$162.5k worth of shares they purchased is now worth AU$238.5k, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Excite Technology Services

Excite Technology Services Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Carl Charalambous, for AU$124k worth of shares, at about AU$0.0082 per share. So we know that an insider sold shares at around the present share price of AU$0.008. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Carl Charalambous was the only individual insider to sell over the last year. Notably Carl Charalambous was also the biggest buyer, having purchased AU$163k worth of shares.

In the last twelve months insiders purchased 29.81m shares for AU$163k. But insiders sold 15.18m shares worth AU$124k. Overall, Excite Technology Services insiders were net buyers during the last year. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Excite Technology Services Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Excite Technology Services insiders own 45% of the company, currently worth about AU$5.5m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Excite Technology Services Insider Transactions Indicate?

The fact that there have been no Excite Technology Services insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Excite Technology Services insiders think the business has merit. While it's good to be aware of 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. To that end, you should learn about the 3 warning signs we've spotted with Excite Technology Services (including 1 which makes us a bit uncomfortable).

Of course Excite Technology Services 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com