Insiders are probably glad they sold their shares in Complii FinTech Solutions Ltd (ASX:CF1) after a 10% fall

Over the past year, insiders have sold AU$200,000 worth Complii FinTech Solutions Ltd (ASX:CF1) shares at an average price of AU$0.06 per share, allowing them to get the most for their money. The company’s market value fell by AU$2.5 million after its share price fell 10% in the past week, but insiders were spared painful losses.

While we would never suggest that investors base their decisions solely on what the directors of a company have done, logic dictates that you should pay attention to whether insiders are buying or selling shares.

See our latest analysis for Complii FinTech Solutions

Complii FinTech Solutions Insider Transactions in the Last Year

In the past twelve months, the largest single sale of an insider trade was when CEO Ian Roe sold AU$200,000 worth of shares at a price of AU$0.06 per share. We generally don’t like to see insider sales, but the lower the selling price, the more it concerns us. It is of some consolation that this sale was completed at a price well above the current share price, which is AU$0.039. So it’s hard to draw any strong conclusions from it. Ian Roe was the only individual insider to sell in the past year.

You can see a visual depiction of insider trading (from companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider buys may be just the ticket.

Insider ownership of Complii FinTech Solutions

Looking at the total insider shareholding in a company can help inform your view of whether they are well aligned with common shareholders. High insider ownership often makes the company’s management more aware of shareholder interests. Complii FinTech Solutions insiders appear to own 39% of the company, worth around AU$8.3 million. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So what does this data suggest about Complii FinTech Solutions insiders?

It doesn’t really mean much that no insider traded Complii FinTech Solutions stock in the last quarter. We do not take much encouragement from the transactions of Complii FinTech Solutions insiders. But it is good to see that insiders own shares in the company. While we like to know what’s going on with insider ownership and transactions, we also make sure to consider the risks a stock faces before making any investment decision. While conducting our analysis, we found that Complii FinTech Solutions has 2 warning signs and it would be unwise to ignore these.

But note: Complii FinTech Solutions may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.

In this article, insiders are those individuals who report their transactions to the relevant regulatory body. Today, we account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general. We provide commentary based on historical data and analyst forecasts only using an objective methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.