Insiders Sold BirdDog Technology Prematurely At AU$0.051 With Stock Trading Higher

Even though BirdDog Technology Limited (ASX:BDT) has fallen by 11% over the past week , insiders who sold AU$638k worth of stock over the past year have had less luck. Given that the average selling price of AU$0.051 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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BirdDog Technology Insider Transactions Over The Last Year

The insider, Eamon Drew, made the biggest insider sale in the last 12 months. That single transaction was for AU$526k worth of shares at a price of AU$0.05 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$0.032. So it is hard to draw any strong conclusion from it. Eamon Drew was the only individual insider to sell over the last year.

Eamon Drew divested 12.51m shares over the last 12 months at an average price of AU$0.051. 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!

See our latest analysis for BirdDog Technology

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Are BirdDog Technology Insiders Buying Or Selling?

We've only seen a tiny insider purchase valued at AU$200, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Insider Ownership Of BirdDog Technology

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. BirdDog Technology insiders own about AU$2.5m worth of shares (which is 49% 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.

What Might The Insider Transactions At BirdDog Technology Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of BirdDog Technology insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BirdDog Technology. At Simply Wall St, we've found that BirdDog Technology has 3 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

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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.