This Insider Has Just Sold Shares In ADvTECH

We'd be surprised if ADvTECH Limited (JSE:ADH) shareholders haven't noticed that the Chief Executive Officer of Resourcing Division, D. Honey, recently sold R3.4m worth of stock at R34.45 per share. However, the silver lining is that the sale only reduced their total holding by 1.4%, so we're hesitant to read anything much into it, on its own.

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The Last 12 Months Of Insider Transactions At ADvTECH

In fact, the recent sale by Chief Executive Officer of Resourcing Division D. Honey was not their only sale of ADvTECH shares this year. Earlier in the year, they fetched R30.81 per share in a -R25m sale. That means that even when the share price was below the current price of R34.08, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was only 11% of D. Honey's holding.

In the last twelve months insiders purchased 710.14k shares for R22m. But they sold 1.25m shares for R39m. Over the last year we saw more insider selling of ADvTECH shares, than buying. 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!

Check out our latest analysis for ADvTECH

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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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.3% of ADvTECH shares, worth about R437m. 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?

An insider hasn't bought ADvTECH stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. 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. You'd be interested to know, that we found 1 warning sign for ADvTECH and we suggest you have a look.

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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.