Yahoo Finance Sophos Group plc (LON:SOPH) Insiders Have Been Selling
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Sophos Group plc (LON:SOPH).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. 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 logic dictates you should pay some attention to whether insiders are buying or selling shares. 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 Sophos Group
Sophos Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Stephen Munford sold UK£2.2m worth of shares at a price of UK£5.61 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is UK£3.24. So it may not tell us anything about how insiders feel about the current share price.
We note that in the last year insiders divested 707.18k shares for a total of UK£4.0m. Over the last year we saw more insider selling of Sophos Group shares, than buying. The sellers received a price of around US$5.69, on average. Insider selling doesn’t make us excited to buy. But the selling was at much higher prices than the current share price (UK£3.24), so it probably doesn’t tell us a lot about the value on offer today. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of Sophos Group
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Sophos Group insiders own 19% of the company, currently worth about UK£293m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Sophos Group Insiders?
The fact that there have been no Sophos Group insider transactions recently certainly doesn’t bother us. It’s great to see high levels of insider ownership, but looking back at the last year, we don’t gain confidence from the Sophos Group insiders selling. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Sophos Group.
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.
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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.
