This Insider Has Just Sold Shares In Alfa Financial Software Holdings

We'd be surprised if Alfa Financial Software Holdings PLC (LON:ALFA) shareholders haven't noticed that the Senior Independent Non-Executive Director, Christopher Sullivan, recently sold UK£133k worth of stock at UK£2.00 per share. That sale was 21% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Alfa Financial Software Holdings

Alfa Financial Software Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Senior Independent Non-Executive Director Christopher Sullivan was not their only trade of Alfa Financial Software Holdings shares this year. They previously purchased UK£245k worth of shares at a price of UK£1.55 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£2.21), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Alfa Financial Software Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Alfa Financial Software Holdings

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. Insiders own 0.8% of Alfa Financial Software Holdings shares, worth about UK£5.2m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Alfa Financial Software Holdings Insiders?

An insider hasn't bought Alfa Financial Software Holdings stock in the last three months, but there was some selling. But we take heart from prior transactions. But we'd like it if insiders owned more stock, overall. So overall it's hard to argue insiders are bullish. 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. In terms of investment risks, we've identified 2 warning signs with Alfa Financial Software Holdings and understanding them should be part of your investment process.

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.