Yahoo Finance Independent Non-Executive Director Erwin Gunst Just Sold A Bunch Of Shares In Avast Plc (LON:AVST)
Some Avast Plc (LON:AVST) shareholders may be a little concerned to see that the Independent Non-Executive Director, Erwin Gunst, recently sold a whopping US$4.0m worth of stock at a price of US$3.99 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.
See our latest analysis for Avast
The Last 12 Months Of Insider Transactions At Avast
Notably, that recent sale by Erwin Gunst is the biggest insider sale of Avast shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£4.13. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Erwin Gunst's stake.
We note that in the last year insiders divested 2069728 shares for a total of UK£7.9m. Insiders in Avast didn't buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Avast better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Avast Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Avast insiders own 3.9% of the company, worth about UK£157m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Avast Insiders?
Insiders haven't bought Avast stock in the last three months, but there was some selling. And even if we look to the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Avast 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
