OPG Power Ventures Plc (LON:OPG) insiders sold UK£579k worth of stock, a possible red flag that's yet to materialize

While OPG Power Ventures Plc (LON:OPG) shareholders have had a good week with the stock up 19%, they shouldn't let their guards down. Although prices were relatively low, insiders chose to sell UK£579k worth of stock in the past 12 months. This could be a sign of impending weakness.

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.

See our latest analysis for OPG Power Ventures

OPG Power Ventures Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Co- Founder, Arvind Gupta, sold UK£579k worth of shares at a price of UK£0.065 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£0.074. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 67% of Arvind Gupta's stake. Arvind Gupta was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. Based on our data, OPG Power Ventures insiders have about 3.9% of the stock, worth approximately UK£1.1m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About OPG Power Ventures Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by OPG Power Ventures insiders. And usually insiders own more stock in the company, according to our data. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for OPG Power Ventures (of which 1 doesn't sit too well with us!) you should know about.

Of course OPG Power Ventures 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, but not derivative transactions.

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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.