CFO & Director Rajesh Nana Sold A Bunch Of Shares In Attacq

Anyone interested in Attacq Limited (JSE:ATT) should probably be aware that the CFO & Director, Rajesh Nana, recently divested R5.0m worth of shares in the company, at an average price of R14.36 each. That sale was 27% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Attacq

Notably, that recent sale by Rajesh Nana is the biggest insider sale of Attacq shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (R15.15). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 27% of Rajesh Nana's stake.

In the last year Attacq 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!

Check out our latest analysis for Attacq

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).

Does Attacq Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Attacq insiders have about 0.7% of the stock, worth approximately R77m. I generally like to see higher levels of ownership.

So What Do The Attacq Insider Transactions Indicate?

An insider hasn't bought Attacq stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Attacq is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Attacq. In terms of investment risks, we've identified 3 warning signs with Attacq and understanding these should be part of your investment process.

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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.