3 ASX All Ords insiders selling over $1 million worth of their company shares

Insiders have been cashing in their shares. Here's what you need to know.

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Insider buying is usually regarded as a bullish indicator, as few people should know a company better than its own directors.

The theory is that if they have the confidence to buy shares, it could be interpreted as a sign that things are going well and they expect them to appreciate in value.

Conversely, when directors sell shares, it is often regarded as a bearish indicator. After all, you would be unlikely to sell your shares if you felt they were about to increase in value.

With that in mind, let's now take a look at three ASX All Ords shares that have recently reported meaningful insider selling:

Audinate Group Ltd (ASX: AD8)

The first ASX All Ords share that has reported some major insider selling is audio-visual networking solutions provider Audinate.

A change of director's interest notice reveals that its chair, David Krall, offloaded a total of 100,000 Audinate shares through a series of on-market trades between 22 March and 27 March.

Krall received prices of between $20.70 to $22.36 per share for his sales, which equates to a total consideration in the region of $2.1 million.

Audinate explained that the chairman's sale was undertaken to fund an investment and for personal reasons. It said:

The disposal of 20% David Krall's shareholding in the Company is to allow an investment in a family asset and will be utilised for personal reasons. Following the sale, David Krall will retain 402,308 ordinary shares in the Company, representing approximately 0.5% of shares on issue.

Lycopodium Ltd (ASX: LYL)

This engineering and project delivery services provider is another ASX All Ords share that has experienced insider selling recently.

According to a change of director's interest notice, the company's founder and executive director, Bruno Ruggiero, offloaded a total of 1.35 million shares through off-market trades on 22 March and 25 March.

The release notes that Ruggiero received a total consideration of approximately $16 million from the sale.

Despite the large sale, the executive director still holds 1,650,520 Lycopodium shares.

Sovereign Metals Ltd (ASX: SVM)

Finally, one of this Africa based mineral exploration company's non-executive directors has been selling shares recently.

A change of director's interest notice reveals that Julian Stephens sold 3 million shares between 26 March and 27 March through a special crossing trade. The ASX All Ords share's director received $1.43 million from the sale.

The release notes that Stephens made the sale in order to settle outstanding personal tax obligations. He is left owning a sizeable 13,557,518 shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group. The Motley Fool Australia has positions in and has recommended Audinate Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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