Have Xref Insiders Or Major Shareholders Been Selling Stock?

We'd be surprised if Xref Limited ( ASX:XF1 ) shareholders haven't noticed that a major shareholder, Timothy Griffiths, recently sold AU$375k worth of stock at AU$0.12 per share. That sale was 11% of their holding, so it does make us raise an eyebrow.

Timothy Griffiths is co-founder of Xref Limited and previously held a position on the board of directors, however he is no longer affiliated with the company after his resignation in 2021.

See our latest analysis for Xref

Xref Insider Transactions Over The Last Year

In fact, the recent sale by Timothy Griffiths was the biggest sale of Xref shares made by an insider or major shareholder in the last twelve months, according to our records. That means that a major shareholder was selling shares at slightly below the current price (AU$0.13). We generally consider it a negative if major shareholders 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 large shareholders selling is not a positive sign, we can't be sure if it does mean they think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 11% of Timothy Griffiths's holding.

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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Xref

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Xref insiders own about AU$8.5m worth of shares. That equates to 35% of the company. 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 Xref Insiders?

An major shareholder sold stock recently, but they haven't been buying. Looking at the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about major transactions going on, it's beneficial to identify the risks facing Xref. Be aware that Xref is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

Of course Xref 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.