Yahoo Finance How Many Insiders Sold LondonMetric Property Plc (LON:LMP) Shares?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in LondonMetric Property Plc (LON:LMP).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
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.’
See our latest analysis for LondonMetric Property
The Last 12 Months Of Insider Transactions At LondonMetric Property
In the last twelve months, the biggest single sale by an insider was when Co-Founder & Non-Executive Chairman Patrick Vaughan sold UK£575k worth of shares at a price of UK£1.92 per share. So what is clear is that an insider saw fit to sell at around the current price of UK£1.85. While their view may have changed since the sale, this is not a particularly positive fact. We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price. The only individual insider seller over the last year was Patrick Vaughan.
Happily, we note that in the last year insiders paid UK£128k for 70.00k shares. But insiders sold 561.00k shares worth UK£1.0m. Patrick Vaughan divested 561.00k shares over the last 12 months at an average price of UK£1.86. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of LondonMetric Property
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. LondonMetric Property insiders own about UK£47m worth of shares. That equates to 3.6% 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.
What Might The Insider Transactions At LondonMetric Property Tell Us?
An insider hasn’t bought LondonMetric Property stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. But since LondonMetric Property is profitable and growing, we’re not too worried by this. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for LondonMetric Property.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
