eToro Group Independent Director Eddy Shalev Sells 34% Of Holding
Some eToro Group Ltd. (NASDAQ:ETOR) shareholders may be a little concerned to see that the Independent Director, Eddy Shalev, recently sold a substantial US$3.1m worth of stock at a price of US$31.20 per share. That sale reduced their total holding by 34% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At eToro Group
In fact, the recent sale by Independent Director Eddy Shalev was not their only sale of eToro Group shares this year. They previously made an even bigger sale of -US$4.1m worth of shares at a price of US$41.26 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$31.81. So it is hard to draw any strong conclusion from it.
Eddy Shalev divested 200.00k shares over the last 12 months at an average price of US$36.23. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for eToro Group
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Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. eToro Group insiders own about US$105m worth of shares (which is 4.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The eToro Group Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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. You'd be interested to know, that we found 1 warning sign for eToro Group and we suggest you have a look.
Of course eToro Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.