This Spectur Insider Reduced Their Stake By 19%

Looking at Spectur Limited's (ASX:SP3 ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

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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Spectur Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Director, Santo Carlini, sold AU$319k worth of shares at a price of AU$0.034 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$0.026). So it is hard to draw any strong conclusion from it. Santo Carlini was the only individual insider to sell shares in the last twelve months. Notably Santo Carlini was also the biggest buyer, having purchased AU$308k worth of shares.

Happily, we note that in the last year insiders paid AU$308k for 22.38m shares. But insiders sold 22.11m shares worth AU$628k. Santo Carlini divested 22.11m shares over the last 12 months at an average price of AU$0.028. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Spectur

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).

Insiders At Spectur Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Spectur. In total, Director Santo Carlini dumped AU$628k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Spectur Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 29% of Spectur shares, worth about AU$3.0m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Spectur Insider Transactions Indicate?

An insider sold Spectur shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 5 warning signs for Spectur (4 are potentially serious!) that we believe deserve your full attention.

But note: Spectur 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.