Yahoo Finance Read This Before Selling Ten Lifestyle Group Plc (LON:TENG) Shares
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Ten Lifestyle Group Plc (LON:TENG).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Ten Lifestyle Group
The Last 12 Months Of Insider Transactions At Ten Lifestyle Group
Independent Non-Executive Chairman Bruce Weatherill made the biggest insider purchase in the last 12 months. That single transaction was for UK£98k worth of shares at a price of UK£0.98 each. So it's clear an insider wanted to buy, at around the current price, which is UK£1.15. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 368k shares worth UK£272k. But insiders sold 50000 shares worth UK£49k. In the last twelve months there was more buying than selling by Ten Lifestyle Group insiders. Their average price was about UK£0.74. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Ten Lifestyle Group Insiders Bought Stock Recently
At Ten Lifestyle Group,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent UK£200k on shares. But Toby Gauvain sold shares worth UK£49k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. Ten Lifestyle Group insiders own about UK£32m worth of shares. That equates to 35% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Ten Lifestyle Group Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Ten Lifestyle Group insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Ten Lifestyle Group, you should check out this free report on analyst forecasts for the company.
Of course Ten Lifestyle 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. We currently account for open market transactions and private dispositions, but not derivative transactions.
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.
