Yahoo Finance Have Insiders Been Selling Lloyds Banking Group plc (LON:LLOY) Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Lloyds Banking Group plc (LON:LLOY).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Lloyds Banking Group
The Last 12 Months Of Insider Transactions At Lloyds Banking Group
The , David J. Oldfield, made the biggest insider sale in the last 12 months. That single transaction was for UK£571k worth of shares at a price of UK£0.61 each. So we know that an insider sold shares at around the present share price of UK£0.58. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 913k shares worth UK£525k. But insiders sold 3.8m shares worth UK£2.3m. All up, insiders sold more shares in Lloyds Banking Group than they bought, over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Lloyds Banking Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders at Lloyds Banking Group Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Lloyds Banking Group. In total, insiders sold UK£643k worth of shares in that time. On the other hand we note Independent Director Stuart Sinclair bought UK£223k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership of Lloyds Banking Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Lloyds Banking Group insiders own about UK£54m worth of shares. That equates to 0.1% of the company. 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 Does This Data Suggest About Lloyds Banking Group Insiders?
The stark truth for Lloyds Banking Group is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Lloyds Banking Group is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. Of course, the future is what matters most. So if you are interested in Lloyds Banking Group, you should check out this free report on analyst forecasts for the company.
Of course Lloyds Banking Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
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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.
