Net 1 UEPS Technologies, Inc. (NASDAQ:UEPS) drops to US$5.68, but insiders may have sold at a lower price of US$5.56 too quickly

Even though Net 1 UEPS Technologies, Inc. (NASDAQ:UEPS) has fallen by 12% over the past week , insiders who sold US$98k worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$5.56 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Net 1 UEPS Technologies

The Last 12 Months Of Insider Transactions At Net 1 UEPS Technologies

Over the last year, we can see that the biggest insider sale was by the insider, Nunthakumarin Pillay, for US$98k worth of shares, at about US$5.56 per share. That means that even when the share price was below the current price of US$5.68, 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. It is worth noting that this sale was only 9.7% of Nunthakumarin Pillay's holding. The only individual insider seller over the last year was Nunthakumarin Pillay.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Net 1 UEPS Technologies insiders own about US$6.5m worth of shares (which is 2.0% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Net 1 UEPS Technologies Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Net 1 UEPS Technologies insiders. And usually insiders own more stock in the company, according to our data. 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. Our analysis shows 2 warning signs for Net 1 UEPS Technologies (1 is potentially serious!) and we strongly recommend you look at them before investing.

Of course Net 1 UEPS Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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.

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