Have Aussie Broadband Insiders Been Selling Stock?

We wouldn't blame Aussie Broadband Limited (ASX:ABB) shareholders if they were a little worried about the fact that Phillip Britt, the Co-founder & Non-Executive Director recently netted about AU$1.5m selling shares at an average price of AU$4.26. However, that sale only accounted for 2.3% of their holding, so arguably it doesn't say much about their conviction.

We've discovered 2 warning signs about Aussie Broadband. View them for free.

Aussie Broadband Insider Transactions Over The Last Year

In fact, the recent sale by Phillip Britt was the biggest sale of Aussie Broadband shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of AU$4.01. While insider selling is a negative, to us, it is more negative if the shares are sold 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.

All up, insiders sold more shares in Aussie Broadband than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Aussie Broadband

I will like Aussie Broadband better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Aussie Broadband Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 11% of Aussie Broadband shares, worth about AU$132m. 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 Aussie Broadband Insider Transactions Indicate?

The stark truth for Aussie Broadband is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Aussie Broadband is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Aussie Broadband and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.