Have ADvTECH Insiders Been Selling Stock?

We'd be surprised if ADvTECH Limited (JSE:ADH) shareholders haven't noticed that the Group Commercial Director, Jean-Didier Oesch, recently sold R3.9m worth of stock at R26.47 per share. On the bright side, that sale was only 5.2% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for ADvTECH

The Last 12 Months Of Insider Transactions At ADvTECH

In fact, the recent sale by Jean-Didier Oesch was the biggest sale of ADvTECH shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of R26.75, an insider wanted to cash in some shares. 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. This single sale was just 5.2% of Jean-Didier Oesch's stake.

ADvTECH insiders didn't buy any shares 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. ADvTECH insiders own about R348m worth of shares. That equates to 2.4% 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.

What Might The Insider Transactions At ADvTECH Tell Us?

Insiders haven't bought ADvTECH stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since ADvTECH is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with ADvTECH and understanding it should be part of your investment process.

But note: ADvTECH may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.