Don't Ignore The Insider Selling In TMT Investments

We note that the TMT Investments PLC (LON:TMT) Executive Director, Alexander Selegenev, recently sold US$70k worth of stock for US$3.49 per share. It wasn't a huge sale, but it did reduce their holding by 15%. This does not instill confidence.

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TMT Investments Insider Transactions Over The Last Year

The Head of Strategy & Director for Strategic Development, German Kaplun, made the biggest insider sale in the last 12 months. That single transaction was for US$131k worth of shares at a price of US$2.62 each. That means that an insider was selling shares at slightly below the current price (US$3.46). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 0.7% of German Kaplun's stake.

TMT Investments insiders didn't buy any shares over the last year. 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!

Check out our latest analysis for TMT Investments

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Insider Ownership Of TMT Investments

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. We usually like to see fairly high levels of insider ownership. It's great to see that TMT Investments insiders own 53% of the company, worth about US$55m. 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 TMT Investments Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, TMT Investments makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Our analysis shows 3 warning signs for TMT Investments (1 is concerning!) and we strongly recommend you look at these before investing.

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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.