Selling Sarine Technologies Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Sarine Technologies Ltd.'s (SGX:U77) value has fallen 11% in the last week, but insiders who sold US$12m worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$0.46 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Sarine Technologies

The Last 12 Months Of Insider Transactions At Sarine Technologies

Over the last year, we can see that the biggest insider sale was by the insider, Ehud Harel, for S$12m worth of shares, at about S$0.46 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is S$0.35. So it may not shed much light on insider confidence at current levels. Ehud Harel was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Sarine Technologies Boast High Insider Ownership?

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 Sarine Technologies insiders own 16% of the company, worth about S$20m. 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 Sarine Technologies Insiders?

The fact that there have been no Sarine Technologies insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Sarine Technologies insiders. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for Sarine Technologies (1 shouldn't be ignored) you should be aware of.

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, 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.