Yahoo Finance Need To Know: Crest Nicholson Holdings plc (LON:CRST) Insiders Have Been Selling 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 before you buy or sell Crest Nicholson Holdings plc (LON:CRST), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Crest Nicholson Holdings
The Last 12 Months Of Insider Transactions At Crest Nicholson Holdings
In the last twelve months, the biggest single sale by an insider was when the Interim CEO, Chris Tinker, sold UK£536k worth of shares at a price of UK£3.70 per share. So what is clear is that an insider saw fit to sell at around the current price of UK£3.54. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Chris Tinker was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 170k shares for UK£515k. But insiders sold 145k shares worth UK£536k. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Crest Nicholson Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.5% of Crest Nicholson Holdings shares, worth about UK£32m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Crest Nicholson Holdings Insider Transactions Indicate?
The fact that there have been no Crest Nicholson Holdings insider transactions recently certainly doesn't bother us. Still, the insider transactions at Crest Nicholson Holdings in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. 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.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
