This Insider Has Just Sold Shares In ADvTECH

Some ADvTECH Limited (JSE:ADH) shareholders may be a little concerned to see that the Chief Executive Officer of Resourcing Division, D. Honey, recently sold a substantial R25m worth of stock at a price of R30.69 per share. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At ADvTECH

Notably, that recent sale by D. Honey is the biggest insider sale of ADvTECH shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of R31.26. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 11% of D. Honey's holding.

In the last year ADvTECH insiders didn't buy any company stock. 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!

View our latest analysis for ADvTECH

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Does ADvTECH Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. ADvTECH insiders own about R424m worth of shares. That equates to 2.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The ADvTECH Insider Transactions Indicate?

Insiders haven't bought ADvTECH 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. But it is good to see that ADvTECH 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. While it's good to be aware of 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. For example - ADvTECH has 1 warning sign we think you should be aware of.

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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.