EBOS Group Chief Executive Officer of Medical Technology Matthew Muscio Sells 100% Of Holding

Some EBOS Group Limited (NZSE:EBO) shareholders may be a little concerned to see that the Chief Executive Officer of Medical Technology, Matthew Muscio, recently sold a substantial NZ$5.3m worth of stock at a price of NZ$36.64 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for EBOS Group

EBOS Group Insider Transactions Over The Last Year

In fact, the recent sale by Matthew Muscio was the biggest sale of EBOS Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of NZ$36.90, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Matthew Muscio's holding.

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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Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own NZ$7.6m worth of EBOS Group stock, about 0.1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

What Might The Insider Transactions At EBOS Group Tell Us?

An insider sold EBOS Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that EBOS Group is growing earnings. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! While we like knowing 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. At Simply Wall St, we found 1 warning sign for EBOS Group that deserve your attention before buying any shares.

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.