Have Insiders Sold Technology One Limited (ASX:TNE) Shares Recently?

We note that the Technology One Limited (ASX:TNE) Independent Non-Executive Director, Kevin Blinco, recently sold AU$95k worth of stock for AU$9.47 per share. On the bright side, that's just a small sale and only reduced their holding by 5.0%.

See our latest analysis for Technology One

The Last 12 Months Of Insider Transactions At Technology One

The Non-Executive Director, John MacTaggart, made the biggest insider sale in the last 12 months. That single transaction was for AU$37m worth of shares at a price of AU$9.20 each. That means that an insider was selling shares at around the current price of AU$9.11. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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.

In the last twelve months insiders purchased 14.91k shares for AU$131k. But they sold 7.05m shares for AU$65m. All up, insiders sold more shares in Technology One than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Technology One better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Technology One Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Technology One insiders own about AU$426m worth of shares (which is 14% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Technology One Insiders?

An insider hasn't bought Technology One stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Technology One is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Technology One has 1 warning sign we think you should be aware of.

Of course Technology One 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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