Have Insiders Sold Argent Industrial Shares Recently?

We'd be surprised if Argent Industrial Limited (JSE:ART) shareholders haven't noticed that the CEO & Executive Director, Treve Hendry, recently sold R4.3m worth of stock at R15.35 per share. However, the silver lining is that the sale only reduced their total holding by 8.0%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Argent Industrial

The Last 12 Months Of Insider Transactions At Argent Industrial

In fact, the recent sale by Treve Hendry was the biggest sale of Argent Industrial shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (R15.45). 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. 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. This single sale was just 8.0% of Treve Hendry's stake.

In the last twelve months insiders purchased 64.00k shares for R973k. But insiders sold 678.53k shares worth R10m. All up, insiders sold more shares in Argent Industrial than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Argent Industrial better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Argent Industrial

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Argent Industrial insiders own 12% of the company, worth about R102m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Argent Industrial Insiders?

Insiders sold Argent Industrial shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Argent Industrial is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for Argent Industrial and we suggest you have a look.

Of course Argent Industrial 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 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.