Anyone interested in MotorCycle Holdings Limited (ASX:MTO) should probably be aware that the Co-Founder, David Ahmet, recently divested AU$624k worth of shares in the company, at an average price of AU$1.62 each. However, the silver lining is that the sale only reduced their total holding by 3.3%, so we’re hesitant to read anything much into it, on its own.
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MotorCycle Holdings Insider Transactions Over The Last Year
In fact, the recent sale by David Ahmet was the biggest sale of MotorCycle Holdings shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of AU$1.54. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 88.90k shares worth AU$176k. On the other hand they divested 391.10k shares, for AU$636k. All up, insiders sold more shares in MotorCycle Holdings than they bought, over the last year. They sold for an average price of about AU$1.63. We don’t gain confidence from insider selling near the recent share price. While some insiders have decided to take some money off the table, we wouldn’t put too much weight on this fact. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of MotorCycle 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 29% of MotorCycle Holdings shares, worth about AU$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At MotorCycle Holdings Tell Us?
The stark truth for MotorCycle Holdings is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn’t bring confidence, either. While insiders do own shares, they don’t own a heap, and they have been selling. We’d practice some caution before buying! While we like knowing 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. At Simply Wall St, we’ve found that MotorCycle Holdings has 5 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
But note: MotorCycle Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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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.