ACT Energy Technologies Insiders Sold CA$2.5m Of Shares Suggesting Hesitancy

A number of ACT Energy Technologies Ltd. (TSE:ACX) insiders sold their shares in the last year, which may have raised concerns among investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At ACT Energy Technologies

In the last twelve months, the biggest single sale by an insider was when the President of Altitude Energy Partners, Clark Tyler, sold CA$687k worth of shares at a price of CA$6.48 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$4.80). So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 129.73k shares for CA$746k. On the other hand they divested 476.61k shares, for CA$2.5m. Over the last year we saw more insider selling of ACT Energy Technologies shares, than buying. 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!

View our latest analysis for ACT Energy Technologies

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Insider Ownership Of ACT Energy Technologies

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that ACT Energy Technologies insiders own 24% of the company, worth about CA$40m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About ACT Energy Technologies Insiders?

It doesn't really mean much that no insider has traded ACT Energy Technologies shares in the last quarter. Our analysis of ACT Energy Technologies insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. 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. For example - ACT Energy Technologies has 1 warning sign we think you should be aware of.

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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.