This Insider Has Just Sold Shares In Converge Technology Solutions

Anyone interested in Converge Technology Solutions Corp. (TSE:CTS) should probably be aware that the Chief Financial Officer, Avjitpal Kamboj, recently divested CA$231k worth of shares in the company, at an average price of CA$4.61 each. That sale was 14% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Converge Technology Solutions

The Last 12 Months Of Insider Transactions At Converge Technology Solutions

Notably, that recent sale by Avjitpal Kamboj is the biggest insider sale of Converge Technology Solutions shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of CA$4.37. 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.

Over the last year, we can see that insiders have bought 136.56k shares worth CA$572k. On the other hand they divested 80.60k shares, for CA$365k. In the last twelve months there was more buying than selling by Converge Technology Solutions insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.1% of Converge Technology Solutions shares, worth about CA$54m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Converge Technology Solutions Tell Us?

Unfortunately, there has been more insider selling of Converge Technology Solutions stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. 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. Every company has risks, and we've spotted 1 warning sign for Converge Technology Solutions you should know about.

Of course Converge Technology Solutions may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com