Insiders Sold Comms Group At AU$0.07, Meanwhile Stock Sits Near AU$0.044

Even though Comms Group Limited (ASX:CCG) has fallen by 12% over the past week , insiders who sold AU$484k worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of AU$0.07 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Comms Group

In the last twelve months, the biggest single sale by an insider was when the insider, Grant J. Ellison, sold AU$484k worth of shares at a price of AU$0.07 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.044. So it may not tell us anything about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 3.95m shares worth AU$220k. But they sold 6.88m shares for AU$484k. Over the last year we saw more insider selling of Comms Group shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Comms Group

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Insiders At Comms Group Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Comms Group. In total, Non-Executive Chairman Ryan O’Hare bought AU$102k worth of shares in that time. But we did see Independent Non-Executive Director Claire Bibby sell shares worth AU$98.2. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership Of Comms Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Comms Group insiders own 47% of the company, worth about AU$8.0m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Comms Group Insider Transactions Indicate?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Comms Group insiders are reasonably well aligned, and optimistic for the future. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Comms Group.

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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.