Insiders Could Have Profited By Holding onto Excite Technology Services Shares Despite 10.0% Drop

Despite the fact that Excite Technology Services Limited's (ASX:EXT) value has dropped 10.0% in the last week insiders who sold AU$1.2m worth of stock in the past 12 months have had less success. The average selling price of AU$0.011 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

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.

Check out our latest analysis for Excite Technology Services

The Last 12 Months Of Insider Transactions At Excite Technology Services

The insider, Amarandhar Kotha, made the biggest insider sale in the last 12 months. That single transaction was for AU$571k worth of shares at a price of AU$0.011 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.009. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid AU$188k for 27.46m shares. On the other hand they divested 108.48m shares, for AU$1.2m. Over the last year we saw more insider selling of Excite Technology Services shares, than buying. They sold for an average price of about AU$0.011. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (AU$0.009), so it probably doesn't tell us a lot about the value on offer today. 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!

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Insiders At Excite Technology Services Have Sold Stock Recently

There was substantially more insider selling, than buying, of Excite Technology Services shares over the last three months. In that time, insiders dumped AU$1.1m worth of shares. Meanwhile insiders bought AU$33k worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Excite Technology Services insiders own 38% of the company, worth about AU$6.0m. 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 Does This Data Suggest About Excite Technology Services Insiders?

The insider sales have outweighed the insider buying, at Excite Technology Services, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Excite Technology Services. Case in point: We've spotted 5 warning signs for Excite Technology Services you should be aware of, and 1 of these is a bit unpleasant.

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.