Have Insiders Sold EBOS Group Shares Recently?

Some EBOS Group Limited (NZSE:EBO) shareholders may be a little concerned to see that insider John Cullity recently sold a substantial NZ$7.0m worth of stock at a price of NZ$29.67 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 86% of their entire holding.

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EBOS Group Insider Transactions Over The Last Year

In fact, the recent sale by John Cullity 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$30.00, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 86% of John Cullity's stake.

In the last twelve months insiders purchased 7.73k shares for NZ$255k. On the other hand they divested 236.25k shares, for NZ$7.0m. 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!

Check out our latest analysis for EBOS Group

I will like EBOS Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of EBOS Group

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. It appears that EBOS Group insiders own 0.3% of the company, worth about NZ$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About EBOS Group Insiders?

Unfortunately, there has been more insider selling of EBOS Group stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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 EBOS Group 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.