Avingtrans Managing Director of Advanced Engineering Systems Austen Adams Sells 44% Of Holding

We wouldn't blame Avingtrans plc (LON:AVG) shareholders if they were a little worried about the fact that Austen Adams, the Managing Director of Advanced Engineering Systems recently netted about UK£488k selling shares at an average price of UK£3.90. That's a big disposal, and it decreased their holding size by 44%, which is notable but not too bad.

Check out our latest analysis for Avingtrans

The Last 12 Months Of Insider Transactions At Avingtrans

In fact, the recent sale by Austen Adams was the biggest sale of Avingtrans 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 UK£3.90. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year we saw more insider selling of Avingtrans shares, than buying. 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!

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Does Avingtrans Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Avingtrans insiders own about UK£10.0m worth of shares. That equates to 7.8% of the company. 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 Avingtrans Tell Us?

The insider sales have outweighed the insider buying, at Avingtrans, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Avingtrans (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

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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.