Trade Alert: CEO & Executive Director Of Adcock Ingram Holdings Andrew Hall Has Sold Stock

Some Adcock Ingram Holdings Limited (JSE:AIP) shareholders may be a little concerned to see that the CEO & Executive Director, Andrew Hall, recently sold a substantial R13m worth of stock at a price of R67.40 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

View our latest analysis for Adcock Ingram Holdings

The Last 12 Months Of Insider Transactions At Adcock Ingram Holdings

Notably, that recent sale by Andrew Hall is the biggest insider sale of Adcock Ingram Holdings shares that we've seen in the last year. That means that even when the share price was below the current price of R70.25, 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. 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 100% of Andrew Hall's stake.

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!

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 Of Adcock Ingram Holdings

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 isn't picking up on much insider ownership at Adcock Ingram Holdings, though insiders do hold about R5.6m worth of shares. We might be missing something but that seems like very low insider ownership.

So What Do The Adcock Ingram Holdings Insider Transactions Indicate?

An insider sold Adcock Ingram Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Adcock Ingram Holdings and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.