Spectur Drops To AU$0.007, Yet Insiders May Have Sold Too Early
Even though Spectur Limited (ASX:SP3) has fallen by 22% over the past week , insiders who sold AU$628k worth of stock over the past year have had less luck. Given that the average selling price of AU$0.028 is still lower than the current share price, insiders would probably have been better off keeping their shares.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Spectur
In the last twelve months, the biggest single sale by an insider was when the insider, Santo Carlini, sold AU$319k worth of shares at a price of AU$0.034 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of AU$0.007. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Santo Carlini.
Santo Carlini divested 22.11m shares over the last 12 months at an average price of AU$0.028. 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 Spectur
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Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Spectur insiders own 31% of the company, worth about AU$913k. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Spectur Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Spectur in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Spectur. In terms of investment risks, we've identified 4 warning signs with Spectur and understanding these should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.