We note that the The Royal Bank of Scotland Group plc (LON:RBS) Chief Operating Officer, Mark Bailie, recently sold UK£47k worth of stock for UK£2.16 per share. It wasn't a huge sale, but it did reduce their holding by 14%. This does not instill confidence.
The Last 12 Months Of Insider Transactions At Royal Bank of Scotland Group
Over the last year, we can see that the biggest insider sale was by the insider, Christopher Marks, for UK£657k worth of shares, at about UK£2.53 per share. That means that an insider was selling shares at around the current price of UK£2.13. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last twelve months insiders purchased 44384 shares for UK£96k. But they sold 676063 for UK£1.5m. All up, insiders sold more shares in Royal Bank of Scotland Group than they bought, over the last year. 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!
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Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 0.04% of Royal Bank of Scotland Group shares, worth about UK£11m. 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 Royal Bank of Scotland Group Tell Us?
The stark truth for Royal Bank of Scotland Group is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Royal Bank of Scotland Group makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Royal Bank of Scotland Group.
Of course Royal Bank of Scotland 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 firstname.lastname@example.org. 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.