Don't Ignore The Insider Selling In Gentrack Group

Some Gentrack Group Limited (NZSE:GTK) shareholders may be a little concerned to see that the MD, CEO & Executive Director, Gary Miles, recently sold a substantial NZ$890k worth of stock at a price of NZ$10.12 per share. However, that sale only accounted for 6.9% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Gentrack Group

The Last 12 Months Of Insider Transactions At Gentrack Group

Notably, that recent sale by Gary Miles is the biggest insider sale of Gentrack Group shares that we've seen in the last year. That means that an insider was selling shares at around the current price of NZ$9.73. 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.

Gentrack Group insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Gentrack Group

Many investors like to check how much of a company is owned by 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. Gentrack Group insiders own about NZ$25m worth of shares. That equates to 2.5% 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.

So What Does This Data Suggest About Gentrack Group Insiders?

An insider hasn't bought Gentrack Group stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gentrack Group. While conducting our analysis, we found that Gentrack Group has 2 warning signs and it would be unwise to ignore these.

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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.