Insider Sellers Might Regret Selling Excite Technology Services Shares at a Lower Price Than Current Market Value

Excite Technology Services Limited's (ASX:EXT) stock price has dropped 11% in the previous week, but insiders who sold AU$1.1m in stock over the past year have had less luck. Given that the average selling price of AU$0.011 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Excite Technology Services

Over the last year, we can see that the biggest insider sale was by the insider, Amarandhar Kotha, for AU$571k worth of shares, at about AU$0.011 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$0.008). So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 2.66m shares for AU$33k. But they sold 93.31m shares for AU$1.1m. All up, insiders sold more shares in Excite Technology Services than they bought, over the last year. 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!

See our latest analysis for Excite Technology Services

I will like Excite Technology Services 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 Of Excite Technology Services

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Excite Technology Services insiders own 29% of the company, worth about AU$4.9m. 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 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. We don't take much encouragement from the transactions by Excite Technology Services insiders. But it's good to see that insiders own shares in 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. When we did our research, we found 3 warning signs for Excite Technology Services (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.