Yahoo Finance Have Insiders Been Selling Wincanton plc (LON:WIN) Shares?
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We often see insiders buying up shares in companies that perform well over the long term. 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 Wincanton plc (LON:WIN).
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, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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.'
View our latest analysis for Wincanton
Wincanton Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO & Executive Director, Adrian Colman, for UK£1.6m worth of shares, at about UK£2.68 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£2.70. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 49% of Adrian Colman's stake.
All up, insiders sold more shares in Wincanton than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Wincanton Insiders Are Selling The Stock
The last three months saw significant insider selling at Wincanton. In total, Adrian Colman dumped UK£1.6m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Wincanton Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Wincanton insiders own 0.7% of the company, worth about UK£2.2m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Wincanton Insiders?
An insider sold Wincanton shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Wincanton is profitable and growing, we're not too worried by this. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Wincanton.
Of course Wincanton may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
