Stock Analysis
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$6.9m worth of stock at a price of NZ$13.00 per share. That's a big disposal, and it decreased their holding size by 23%, which is notable but not too bad.
Check out our latest analysis for Gentrack Group
Gentrack Group Insider Transactions Over The Last Year
Notably, that recent sale by Gary Miles is the biggest insider sale of Gentrack Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of NZ$13.40. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. It is worth noting that this sale was only 23% of Gary Miles's holding.
In the last year Gentrack Group insiders didn't buy any company stock. 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!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Gentrack Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.4% of Gentrack Group shares, worth about NZ$33m. 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?
Insiders haven'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. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gentrack Group. When we did our research, we found 2 warning signs for Gentrack Group (1 is concerning!) that we believe deserve your full attention.
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.
About NZSE:GTK
Gentrack Group
Engages in the development, integration, and support of enterprise billing and customer management software solutions for the energy and water utility, and airport industries.