This Technology One Insider Reduced Their Stake By 12%

Insiders were net sellers of Technology One Limited's (ASX:TNE ) stock during the past year. That is, insiders sold more stock than they bought.

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.

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The Last 12 Months Of Insider Transactions At Technology One

The insider, John MacTaggart, made the biggest insider sale in the last 12 months. That single transaction was for AU$63m worth of shares at a price of AU$21.11 each. That means that even when the share price was below the current price of AU$38.75, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 12% of John MacTaggart's holding. John MacTaggart was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid AU$588k for 19.59k shares. On the other hand they divested 2.98m shares, for AU$63m. 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 Technology One

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

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 10% of the company, currently worth about AU$1.3b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Technology One Insiders?

The fact that there have been no Technology One insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Technology One, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in Technology One, you should check out this free report on analyst forecasts for the company.

But note: Technology One may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.