Have ACT Energy Technologies Insiders Been Selling Stock?

We'd be surprised if ACT Energy Technologies Ltd. (TSE:ACX) shareholders haven't noticed that the Executive Chairman, Roderick Maxwell, recently sold CA$172k worth of stock at CA$8.36 per share. However, the silver lining is that the sale only reduced their total holding by 1.8%, so we're hesitant to read anything much into it, on its own.

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ACT Energy Technologies Insider Transactions Over The Last Year

The insider, Clark Tyler, made the biggest insider sale in the last 12 months. That single transaction was for CA$423k worth of shares at a price of CA$6.72 each. That means that an insider was selling shares at slightly below the current price (CA$8.68). 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. It is worth noting that this sale was only 23% of Clark Tyler's holding.

Happily, we note that in the last year insiders paid CA$390k for 62.65k shares. But insiders sold 193.50k shares worth CA$1.3m. In total, ACT Energy Technologies insiders sold more than they bought 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 ACT Energy Technologies

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Does ACT Energy Technologies Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that ACT Energy Technologies insiders own 23% of the company, worth about CA$75m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The ACT Energy Technologies Insider Transactions Indicate?

An insider sold ACT Energy Technologies shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. 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 ACT Energy Technologies. In terms of investment risks, we've identified 3 warning signs with ACT Energy Technologies and understanding them 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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